Question

below table shows the production possibilities for the country of emilon:

	a	b	c	d	e
beef	100	90	70	40	0

complete the following (approximate) possibilities for emilon.
a. emilon can produce 260 rice and \boxed{} beef.
b. emilon can produce \boxed{} rice and 80 beef.
which of the following product combinations is emilon capable of producing?
c. can emilon produce 200 rice and 80 beef? (click to select)
d. can emilon produce 140 rice and 70 beef? (click to select)

Explanation:

Step1: Find opportunity cost of rice

First, calculate the opportunity cost of producing 1 unit of rice. From point D to E: rice increases by $280-240=40$, beef decreases by $40-0=40$. So opportunity cost of 1 rice is $\frac{40}{40}=1$ beef.

Step2: Solve part a (260 rice, find beef)

Start from point E (280 rice, 0 beef). To get 260 rice, we reduce rice by $280-260=20$. So we gain $20\times1=20$ beef.
Starting beef (point D) is 40, adjust: $40 - (260-240)\times1=40-20=20$

Step3: Solve part b (80 beef, find rice)

Start from point A (0 rice, 100 beef). To get 80 beef, we reduce beef by $100-80=20$. So we gain $20\times1=20$ rice.
Starting rice (point B) is 100, adjust: $100 + (90-80)\times1=100+10=50$

Step4: Analyze part c (200 rice,80 beef)

From the table, 100 rice pairs with 90 beef, 180 rice pairs with70 beef. 200 rice is more than 180, so beef would be less than70. 80 beef is impossible here.

Step5: Analyze part d (140 rice,70 beef)

140 rice is between 100 and180. 70 beef is the amount at 180 rice. Since 140 <180, we can produce 140 rice and have more than 70 beef, so this is possible.

Answer:

a. 20
b. 50
c. No
d. Yes