# Macroeconomics

. Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced. Obviously, given their limited resources and available technology, as they use more of their resources for potato production, there are fewer resources available for catching fish.

Maximum annual output options
Quantity of potatoes Quantity of fish
(pounds) (pounds)
A 1,000 0
B 800 300
C 600 500
D 400 600
E 200 650
F 0 675

a. Examine the Maximum annual output options table above and the resulting Production Possibility Frontier Graph below and answer parts b - f.

Production Possibility Frontier Graph

b. Can Atlantis produce 500 pounds of fish and 800 pounds of potatoes? Explain.

c. What is the opportunity cost of increasing the annual output of potatoes from 600 to 800 pounds?

d. What is the opportunity cost of increasing the annual output of potatoes from 200 to 400 pounds?

e. Can you explain why the answers to parts c and d are not the same?

f. What does this imply about the slope of the production possibility frontier?

1. 👍 0
2. 👎 0
3. 👁 414

1. 👍 0
2. 👎 0

## Similar Questions

1. ### Calculus

A small resort is situated on an island that lies exactly 6 miles from P, the nearest point to the island along a perfectly straight shoreline. 10 miles down the shoreline from P is the closest source of fresh water. If it costs

2. ### math

Natalie is buying potatoes at the grocery store. If she buys 6 potatoes that each have a mass of 375 grams, what is the total mass of the potatoes, in kilograms?

3. ### ELA

Volcano Forms New Pacific Island Angela Antrim 1NORTHERN PACIFIC OCEAN—Scientists have discovered a new, currently unnamed island in the northern Pacific Ocean. The small island is located in an isolated area between Hawaii and

4. ### science

suppose that a population of skunks lives on an isolated island is 500 skunks are present today and the birth rate is 65 per week and the death is 47 per week how many skunks to you predict will be on the island 105 days from now

1. ### Physics

Here is a simple example. The inhabitants of a small island begin exporting beautiful cloth made from a rare plant that grows only on their island. Seeing how popular the small quantity that they export has been, they steadily

2. ### statistics

Potatoes - Samples: Assume the weights of Farmer Carl's potatoes are normally distributed with a mean of 8.0 ounces and a standard deviation of 1.3 ounces. He bags his potatoes in groups of 6. You buy a bag and the total weight is

3. ### English II

1. Explain the difference between a mystery and a legend. 2. Create a list of at least five (5) of these proven and unproven beliefs about your chosen event. 3. Explain why each of the items in the list are proven or unproven. 1.

4. ### history

Which theory do most scientists believe about the first inhabitants of North America? A. They walked across the frozen Bering Land Bridge. B. They swam across the Pacific Ocean. C. They sailed across the Atlantic Ocean. D. They

1. ### vectors

In an attempt to escape his island, Gilligan builds a raft and sets to sea. The wind shifts a great deal during the day, and he is blown along the following straight lines: 2.5 km 45° north of west; then 4.70 km 60° south of

2. ### Geography (Ms. Sue)

1). Which industries drive Canada's economy? 2). In which region is the majority of the population located? 3). Which bodies of water do the Atlantic Provinces border? 4). What is the major economic activity of the Atlantic Ocean?

3. ### Math

A farmer uses 11/18 of his field to grow rice and 3/7 of remaning field for growing tomatoes of the area thus left he uses 1/4 of his to grow spanich and the rest to grow sweet potatoes What fraction of field is used to grow sweet

4. ### check geo

the use of haevy farm machinery tilling and clear cutting: A)allows farmers to reuse thier lands for decades B)causes rain forest to grow back in record numbers C)has been banned in most parts of the region scince 1995 D)causes