AB 204 All Assignments AB 204 All Assignments | Page 5

After UK joins the market demand for salmon , what will happen to the price U . S . consumers pay for salmon ? What will happen to the quantity of salmon consumed by U . S . consumers ?
3 ) Assume 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 .
Is it feasible for Atlantis to produce 500 pounds of fish and 800 pounds of potatoes ? Explain .
Calculate the opportunity cost of increasing the annual output of potatoes from 800 to 1000 pounds .
Calculate the opportunity cost of increasing the annual output of potatoes from 400 to 600 pounds .
What is the difference between the answers to parts b and c ?
What does the change in opportunity costs indicate about the slope of the production possibility frontier ?

AB 204 Unit 4 Assignment

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