Option #2: Energy Production and Banana Production

For this week’s assignment, research the energy production and banana production for two countries (you can pick the countries, but make sure one of them produces bananas). You are to construct a production possibilities frontier for each country. Use the total energy production as the intersection for the vertical axis and the total quantity of bananas as the intersection for the horizontal axis. Connect those points to form your production possibilities frontier. Do this for each two non-U.S. countries. In a paper,_x000D_
Determine the opportunity costs of energy in terms of bananas from your production possibilities graph._x000D_
Describe your production possibilities frontier._x000D_
Identify on the curve and then explain in your paper the unattainable, efficient, and inefficient areas of production._x000D_
Discuss the concept of increasing opportunity costs and identify whether the opportunity costs from your graph exhibit increasing opportunity costs._x000D_
Illustrate, based on the opportunity costs for each store, how specialization and trade can lead to a mutually beneficial outcome.

Leave a Reply

Your email address will not be published. Required fields are marked *