Biology Forums - Study Force

Table 2-5

Possible Output Combinations	Shrimp (thousands of pounds)	Oysters (thousands of pounds)
A	35	0
B	30	20
C	25	35
D	20	47
E	15	57
F	10	64
G	5	68
H	0	70

Refer to Table 2-5. The Shellfish Shack produces only shrimp and oysters. The table above shows the maximum possible output combinations of the two types of shellfish using all resources and currently available technology.

a.	Suppose The Shellfish Shack is currently producing at point E. What is the opportunity cost of

producing an additional 11,000 pounds of oysters?

b.	Suppose The Shellfish Shack is currently producing at point E. What happens to the opportunity

cost of producing more and more shrimp? Does it increase, decrease, or remain constant? Explain your answer.

c.	Suppose The Shellfish Shack is currently producing at point B. What happens to the opportunity

cost of producing more and more oysters? Does it increase, decrease, or remain constant? Explain your answer.

d.	Suppose The Shellfish Shack is plagued by a disease which destroys oyster beds but not shrimp

habitats. What would happen to its PPF?

Content hidden