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Given the Following Production Possibility Curve A) What Is the Total Cost of Producing 27 Units

Question 151

Essay

Given the following production possibility curve.  A  B  C  D  E  Peanut Butter 302722150 Jelly 08111415\begin{array} { | l | c | c | c | c | c | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Peanut Butter } & 30 & 27 & 22 & 15 & 0 \\\hline \text { Jelly } & 0 & 8 & 11 & 14 & 15 \\\hline\end{array} a) What is the total cost of producing 27 units of peanut butter?
b) What is the total cost of producing 8 units of jelly?
c) What is the opportunity cost from point B to point D?
d) What is the per unit cost of going from point B to point A?

Correct Answer:

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a) 9 units of jelly
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