AB 204 Course Great Wisdom / tutorialrank.com AB 204 Course Great Wisdom / tutorialrank.com | Page 5

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?
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AB 204 Unit 4 Assignment
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