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Consider a constant slope PPF with a vertical intercept 80 guns and horizontal intercept of 120 tons of butter The opportunity cost of increasing butter output for 30 to 31 tons is?
Wiki User
∙ 10y ago
2/3 of a gun (80 guns/120 tons of butter = 2/3 opportunity cost of butter; meaning that is what you willing to pay for an extra ton of butter). In order to find the opportunity cost of guns, you would divide 120/80=1.5)
Wiki User
∙ 10y ago
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