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Point on PPC
Farm goods
Factory goods
b
10
700
c
20
650
e
60
400
f
70
120
If the economy wanted to move from point b to c, what would be the opportunity cost of increasing farm production by 10 tons? Your answer should be in terms of factory goods.
Compare the movement from b to c and from e to f. What do you notice about opportunity cost? Explain.
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