Table 3-13
The following table contains some production possibilities for an economy for a given month. $$\begin{array} { | c | c | }
\hline \text { SWratari } & \text { Glavi } \
\hline 4 & 300 \
\hline 6 & ? \
\hline 8 & 100 \
\hline
\end{array}$$
-Refer to Table 3-13. If the production possibilities frontier is bowed outward, then "?" could be
A) 100.
B) 150.
C) 200.
D) 250.

Question

Table 3-13
The following table contains some production possibilities for an economy for a given month. $$\begin{array} { | c | c | } 
\hline \text { SWratari } & \text { Glavi } \
\hline 4 & 300 \
\hline 6 & ? \
\hline 8 & 100 \
\hline
\end{array}$$
-Refer to Table 3-13. If the production possibilities frontier is bowed outward, then "?" could be
A) 100.
B) 150.
C) 200.
D) 250.

Quizplus · Accepted Answer

A bowed outward production possibilities frontier indicates increasing opportunity costs. As more SWratari is produced, the opportunity cost in terms of Glavi increases. Therefore, "?" should be a number less than 300 but more than 100, making 250 a plausible value.

Table 3-13 the Following Table Contains Some Production Possibilities for an Economy

Table 3-13
the Following Table Contains Some Production Possibilities for an Economy