Between which points is the opportunity cost per thousand automobiles highest? Between which points is the opportunity cost per thousand tons of beef highest? (10 pts)
points A-E
Beef at A-E 10, 9, 7, 4 0
Autos at A-E 0, 2, 4, 6, 8
To determine the points between which the opportunity cost per thousand automobiles is highest, we need to calculate the opportunity cost per thousand automobiles at each point. The opportunity cost is the difference in the number of automobiles produced between two points divided by the difference in beef production between those same two points.
Let's calculate the opportunity cost per thousand automobiles at each point:
- Between points A and B: The difference in automobile production is 2 and the difference in beef production is 1 (10 - 9). So, the opportunity cost per thousand automobiles is 1/2 = 0.5.
- Between points B and C: The difference in automobile production is 2 and the difference in beef production is 2 (9 - 7). So, the opportunity cost per thousand automobiles is 2/2 = 1.
- Between points C and D: The difference in automobile production is 2 and the difference in beef production is 3 (7 - 4). So, the opportunity cost per thousand automobiles is 3/2 = 1.5.
- Between points D and E: The difference in automobile production is 2 and the difference in beef production is 4 (4 - 0). So, the opportunity cost per thousand automobiles is 4/2 = 2.
From the calculations above, we can see that the opportunity cost per thousand automobiles is highest between points D and E.
Similarly, to determine the points between which the opportunity cost per thousand tons of beef is highest, we need to calculate the opportunity cost per thousand tons of beef at each point:
- Between points A and B: The difference in beef production is 1 and the difference in automobile production is 2 (0 - 2). So, the opportunity cost per thousand tons of beef is -2/1 = -2.
- Between points B and C: The difference in beef production is 2 and the difference in automobile production is 2 (2 - 4). So, the opportunity cost per thousand tons of beef is -2/2 = -1.
- Between points C and D: The difference in beef production is 3 and the difference in automobile production is 2 (4 - 6). So, the opportunity cost per thousand tons of beef is -2/3 ≈ -0.67.
- Between points D and E: The difference in beef production is 4 and the difference in automobile production is 2 (6 - 8). So, the opportunity cost per thousand tons of beef is -2/4 = -0.5.
From the calculations above, we can see that the opportunity cost per thousand tons of beef is highest between points A and B.