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2. The following table provides information about the production possibilities frontier of a Country.(4)

Computer Wheat
0 420
10 400
30 360
50 300
70 200
90 0

a. Plot and connect these points to create Country's production possibilities frontier.
b. If the Country currently produces 10 computers and 400 kg wheat, what is the opportunity cost of an additional 20 computers?
c. Suppose that a technological advancement allows the country to produce computers more efficiently. What would be the effect on the PPF? Draw it.

Answer :

Parrain

Based on the PPF of the country, if the country were to produce an additional 20 computers at that level, the opportunity cost would be 40 kg of wheat.

If a technological advancement allows for computers to be produced more efficiently, the PPF would expand outwards as shown in the attachment.

What would be the opportunity cost?

At the point where this country can produce 10 computers, the amount of wheat it can produce is 400 kg wheat.

If it produces 20 more computers, it will move to the point where it can produce 30 computers and 360 kg of wheat. Opportunity cost would be:

= 400 - 360

= 40 kg wheat.

What happens due to a technological advancement?

When there is an improvement in technology, the production capacity of a nation increases. This leads to the production possibilities frontier expanding outward.

Find out more on the production possibilities frontier at https://brainly.com/question/26685094.

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