ECON 10010 Lecture Notes - Lecture 2: The O.C., Absolute Advantage, Opportunity Cost
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98: guesses: syria, argentina, nigeria, uganda, france. Scarcity: you can"t produce beyond the ppf. Full production of each good is its intercept. To get x tractors, you give up y ice cream. 1 tractors, ice cream: the oc (opportunity cost) of one good is always the reciprocal of the other. If you"re not in the ppf, there is no oc because you are not at full production (point. The oc in france of a tractor is 1/3 of ice cream. Ocus 1 tractor = ice cream. Ocus 1 ice cream = 4 tractors. Personal answer: no because both goods in the same country are reciprocal and in order to produce more of one you have to produce less of the other. 1/xa < 1/xb: this (highlighted in yellow) poses a contradiction because the 1st statement implies that, since xa < xb, then 1/xa > 1/xb, which is not the case, as seen on the 2nd statement.
