Economic Trends in the Belgian Cocoa Bean Market

Economic Trends in the Belgian Cocoa Bean Market

Question 1

Can St. Atanagio produce 650 pounds of poultry and 650 pounds of corn? Explain. Where would this point lie relative to the production possibility frontier?

This point will lie outside frontier of the production possibility. St. Atanagio can produce 650 pounds of corn and also 650 pounds of poultry of there is technological change, change in the labor force, and change in the natural resources and lastly change in the human capital (Lambert et al, 1991).

What is the opportunity cost of increasing the annual output of corn from 800 to 1000 pounds?

The opportunity cost of annual output increment of corn to 1000 pounds from 800 pounds is equivalent to to200 pounds of poultry.…