the above figure shows the production possibility frontier for a country. suppose the country is producing…

the above figure shows the production possibility frontier for a country. suppose the country is producing at point e. what would be the opportunity cost to increase the production of wine to 9 thousand bottles?\n\n3 tons of rice\n9 thousand bottles of wine\n12 tons of rice\n15 thousand bottles of wine\nnothing, it is a free lunch.

the above figure shows the production possibility frontier for a country. suppose the country is producing at point e. what would be the opportunity cost to increase the production of wine to 9 thousand bottles?\n\n3 tons of rice\n9 thousand bottles of wine\n12 tons of rice\n15 thousand bottles of wine\nnothing, it is a free lunch.

Answer

Explanation:

Step1: Locate points on PPF

At point E, rice production is 15 tons and wine production is 0 thousand bottles. At point D, wine production is 9 thousand bottles and rice production is 12 tons.

Step2: Calculate opportunity - cost

Opportunity cost is the amount of one good given up to produce more of another good. To increase wine production from 0 (at E) to 9 thousand bottles (at D), rice production decreases from 15 tons to 12 tons. The amount of rice given up is (15 - 12=3) tons.

Answer:

3 tons of rice