This is a Take home final and i need to double check the answers with a expert.

Question

This is a Take home final and i need to double check the answers with a expert. Can someone help me

Consumer Goods (Food) 1.300 1,200 ,000 Capital Goods (Drill Presses) 300 400 500 Figure I Consider Figure 1. It represents the production-possibilities frontier (PPP) of Balkania, which produces two types of goods: consumer goods ("food") and capital goods "drill presses"). Use it to answer the following three (3) questions. If Balkania produces the output mix shown by point "B", what is the marginal opportunity cost of one additional drill press? (1) (a) 200 tons of food (b) 1,000 tons of food. (c) 2 tons of food. (d) 100 drill presses (e) 2 drill presses. (2) If Balkania produces the output mix shown by point "D'", what is the marginal opportunity cost of one additional drill press now? (a) (b) (c) (d) (c) 200 tons of food. 1,000 tons of food. 2 tons of food. 100 drill presses. 0.

Explanation / Answer

1) C. 2 tons of food.

Explanation: Moving from B to C, the country needs to sacrifice 200 tons (1200 - 1000) of food to produce 100 units (500 - 400) of drill press. So, the opportunity cost of one additional drill press = 200/100 = 2 tons of food.

2) e. 0

Explanation: The country is operating inside its production possibility curve and it has unused capacity. So, it will have 0 opportunity cost to produce one additional drill press.

3. C.

Explanation: Point E is outside the production possibility curve of the country. So, the country cannot produce at this level.

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