Draw a production possibilities frontier ppf with missiles


Draw a production possibilities frontier (PPF) with missiles on the horizontal axis and butter on the vertical axis, illustrating these options, showing points A – F. Option missiles butter A 0 30 B 1 28 C 2 24 D 3 18 E 4 10 F 5 0 a. Can this country produce 24 units of butter and 4 missiles? Explain. Where would this point lie relative to the PPF? b. What is the trade-off when moving from point A to B? c. What is the opportunity cost of increasing missile production from 3 – 4 units? d. What is the opportunity cost of increasing butter production from 18 – 24 units? e. What is the maximum amount of butter that can be produced, if all resources are devoted to butter production? f. Can this country produce 2 missiles and 10 units of butter? Yes or no? Where would this point lie relative to the PPF?

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Business Economics: Draw a production possibilities frontier ppf with missiles
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