00:01
Hello.
00:04
Let's start with our part a.
00:09
So we need to plot this production possibilities data.
00:14
So let me write this graph.
00:20
So we have automobiles and we have beef.
00:32
Here we have 10, here we have 8, which is the highest number.
00:39
So if this country, this country, produces zero automobiles, it's 10 ,000 tons of beef.
00:51
If automobiles are equal to 2, it's somewhere here.
00:59
Here we have 9 units of beef.
01:09
When it's 4, it will be 7.
01:16
When it's 6, it will be 4.
01:21
Somewhere here and when it's 8 it will be 0.
01:31
So this is, and now we can connect this dots.
01:41
So here we have the production possibility frontier.
01:46
What is the opportunity cost of the first 2 ,000 automobiles produced? so if they produce 2 ,000 automobiles, 2 ,000 automobiles, they will lose 4 ,000 tons of beef.
02:09
So for production 1 automobile, they sacrifice 2 ,000 tons of beef.
02:22
2 ,000 of tons of beef.
02:42
And also the question is between which points the opportunity costs per thousand.
02:46
Automobiles highest.
02:52
The highest is here at this two point.
03:02
This is the opportunity cost per thousand automobiles.
03:08
And opposite between which points the opportunity cost per thousand tons of beef highest...