Types of Production
Butter
Guns
A
0
50
Production Alternative
(use Insert Drawing feature)
B
10
40
C
12
30
D
14
E
16
20 B04
a. Draw a production possibilities curve for butter and guns using the
data above.
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b. Label the points where the economy would be efficient (E), inefficient
(I) and unattainable (U).
c. What is the opportunity cost of moving from point A to point B?
d. What is the opportunity cost of moving from point B to point C?