marginal opportunity cost
Question Details
Plot the PPC of a nation with the following data.
Combination Healthcare All othergoods
A 0 100
B 25 90
C 50 70
D 75 40
E 100 0
A. Calculate the marginal opportunity cost of each combination.
B. What is the opportunity cost of combination C?
C. Suppose a second nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity. Show whether the two nations can gain from specialization and trade.