The Production Possibilities Frontier

A map of what an economy can make

The slope is the opportunity cost

Why the frontier bows outward

What moves the frontier

An island's production possibilities frontier for wheat and cloth passes through the bundles (0 cloth, 8 wheat), (2 cloth, 6 wheat) and (4 cloth, 0 wheat). Which statement about the bundle (2 cloth, 5 wheat) is correct?

Along the same frontier, moving from (0 cloth, 8 wheat) to (2 cloth, 6 wheat) to (4 cloth, 0 wheat), what is the opportunity cost of cloth in each segment, and why does it rise?

An economy's frontier for wheat and cloth contains the bundles (4 cloth, 0 wheat), (3 cloth, 5 wheat) and (2 cloth, 6 wheat). Moving from (2 cloth, 6 wheat) to (3 cloth, 5 wheat) costs some wheat per extra bolt, but moving from (3 cloth, 5 wheat) to (4 cloth, 0 wheat) costs more. Compute the opportunity cost of the final bolt, in bushels of wheat, and write the number.

An economy's frontier for wheat and cloth contains (4 cloth, 0 wheat), (3 cloth, 5 wheat) and (0 cloth, 9 wheat). Where do the bundles (3 cloth, 5 wheat), (2 cloth, 4 wheat) and (4 cloth, 6 wheat) sit?

Why does a production possibilities frontier between wheat and cloth typically bow outward from the origin?

A frontier passes through (0 cloth, 8 wheat), (2 cloth, 6 wheat) and (4 cloth, 0 wheat). Moving from (2 cloth, 6 wheat) back to (0 cloth, 8 wheat), compute the opportunity cost of one extra bushel of wheat in bolts of cloth, and write the number.