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    Country A'S - Production Possibilities: Truck Production Tank Production Opportunity Cost of Tanks

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    James Giangrande
    The document compares the production possibilities of trucks and tanks for two countries. It shows how total labor available affects the maximum output of each good, and the opportunity cost of producing tanks in terms of foregone truck production. For both countries, the opportunity cost of tanks increases as tank output increases due to the need to reallocate more labor from truck to tank production.

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    Country A'S - Production Possibilities: Truck Production Tank Production Opportunity Cost of Tanks

    Uploaded by

    James Giangrande
    41 views1 page
    The document compares the production possibilities of trucks and tanks for two countries. It shows how total labor available affects the maximum output of each good, and the opportunity cost of producing tanks in terms of foregone truck production. For both countries, the opportunity cost of tanks increases as tank output increases due to the need to reallocate more labor from truck to tank production.

    Original Description:

    Production Possibility Frontier

    Original Title

    PPF Spreadsheet

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    The document compares the production possibilities of trucks and tanks for two countries. It shows how total labor available affects the maximum output of each good, and the opportunity cost of producing tanks in terms of foregone truck production. For both countries, the opportunity cost of tanks increases as tank output increases due to the need to reallocate more labor from truck to tank production.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    41 views1 page

    Country A'S - Production Possibilities: Truck Production Tank Production Opportunity Cost of Tanks

    Uploaded by

    James Giangrande
    The document compares the production possibilities of trucks and tanks for two countries. It shows how total labor available affects the maximum output of each good, and the opportunity cost of producing tanks in terms of foregone truck production. For both countries, the opportunity cost of tanks increases as tank output increases due to the need to reallocate more labor from truck to tank production.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 1

    COUNTRY A'S - PRODUCTION POSSIBILITIES

    TRUCK PRODUCTION
    POINTS TOTAL LABOR AVAILABLE OUTPUTS OF TRUCKS PER DAY X LABOR NEEDED = PER TRUCK TOTAL LABOR REQUIRED PER TRUCK 10 8 6 4 2 0 LABOR NOT USED FOR TRUCKS 0 2 4 6 8 10

    TANK PRODUCTION
    POTENTIAL OUTPUT OF TANKS PER DAY 0 2 3 3.8 4.5 5 > INCREASE IN TANK OUTPUT

    OPPORTUNITY COST OF TANKS


    TRUCKS RELEASED TANKS COST PER TANK CREATED (IN TRUCKS)

    A B C D E F

    10 10 10 10 10 10

    5 4 3 2 1 0

    2 2 2 2 2 2

    2 1 0.8 0.7 0.5

    0 2 2 2 2 2

    0 2 1 0.8 0.7 0.5

    NA 1.000 2.000 2.500 2.857 4.000

    COUNTRY B'S - PRODUCTION POSSIBILITIES


    TRUCK PRODUCTION
    POINTS TOTAL LABOR AVAILABLE OUTPUTS OF TRUCKS PER DAY X LABOR NEEDED = PER TRUCK TOTAL LABOR REQUIRED PER TRUCK 20 16 12 8 4 0 LABOR NOT USED FOR TRUCKS 0 4 8 12 16 20

    TANK PRODUCTION
    POTENTIAL OUTPUT OF TANKS PER DAY 0 2 4 6 8 10 > INCREASE IN TANK OUTPUT

    OPPORTUNITY COST OF TANKS


    TRUCKS RELEASED TANKS COST PER TANK CREATED (IN TRUCKS)

    A B C D E F

    20 20 20 20 20 20

    10 8 6 4 2 0

    2 2 2 2 2 2

    2 2 2 2 2

    0 4 4 4 4 4

    0 2 2 2 2 2

    NA 2.00 2.00 2.00 2.00 2.00

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