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The table below provides information on the production possibilities of tanks and bridges for a society.
a. Using the data given in the table, find the opportunity cost (in tanks foregone) of producing the first, second, third, fourth, and fifth bridges.
b. Plot the production possibilities data, with tanks on the vertical axis and bridges on the horizontal axis. Sketch the production possibilities frontier.
c. Briefly explain how the shape of the curve in part b captures the law of increasing opportunity costs.
d. The society develops a new production method that improves the efficiency of both bridge building and tank production. On your graph in part b, show how this new technology will change the production possibilities frontier.
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