Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching fish.
Maximum annual Output options | Quantity of potatoes (pounds) | Quantity of fish (pounds) |
---|---|---|
A | 1,000 | 0 |
B | 800 | 300 |
C | 600 | 500 |
D | 400 | 600 |
E | 200 | 650 |
F | 0 | 675 |
The x-axis on the graph is labeled ‘Quantities of potatoes’ in pounds with values from 0 to 1100 in increments of 100. The y-axis is labeled ‘Quantities of fish’ in pounds, with values from 0 to 700 in increments of 100. The points A to F represented in the table are plotted on the graph.
The x-axis on the graph is labeled ‘Quantities of fish’ in pounds with values from 0 to 1100 in increments of 100. The y-axis is labeled ‘Quantities of potatoes’ in pounds, with values from 0 to 1100 in increments of 100. The points A to F represented in the table are plotted on the graph.
Maximum annual Output options | Quantity of potatoes (pounds) | Quantity of fish (pounds) |
---|---|---|
A | 1,000 | 0 |
B | 800 | 300 |
C | 600 | 500 |
D | 400 | 600 |
E | 200 | 650 |
F | 0 | 675 |
Assume the economy of Atlantis only produces fish (point F). Calculate the opportunity cost of producing potatoes in 200 pound increments.
Maximum annual Output options | Quantity of potatoes (pounds) | Opportunity cost of Producing potatoes in terms of fish |
---|---|---|
F | 0 | - |
E | 200 | umtCjsP7rSENfBJaT4jiWW5cFfc= |
D | 400 | 3kWgAzDPl7+1jYG3gkc6rqBpvFI= |
C | 600 | wiwMMLS1GL0C3Snq6EpFNChLaS4= |
B | 800 | xTp3ztpprOZgQpPXo58zjY68L1M= |
A | 1,000 | Vfrb19FEP2MHqM8jpRfoPFtudFM= |