Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil’s production possibilities frontier?

Respuesta :

Answer: (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts)

Explanation:

The best pair point as related to the opportunity cost is (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

If Brazil had an opportunity cost on each cashew for 100 peanuts, then, its best pairs of points on its production possibilities frontier will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

The Production possibility frontier is an economic curve that illustrates the amounts of two products that can be produced while both of them depend on the exhaustible resources.

In conclusion, the pair will be (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts).

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