Question: Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil's production possibilities for ethanol and food crops:
Ethanol Food crops
(barrels per day) (tonnes per day)
70 and 0
64 and 1
54 and 2
40 and 3
22 and 4
0 and 5
Does Brazil face an increasing opportunity cost of ethanol? What feature of Brazil's PPF illustrates increasing opportunity cost?