(b) What is the marginal opportunity cost of producing the first unit of paper? The marginal opportunity cost of producing the fourth unit of paper?
297) What is the economic rationale for the law of increasing costs?
298) Explain how increasing opportunity costs are reflected graphically in the production possibilities curve. How would the curve appear if opportunity costs were constant?
299) An economy consists of five workers, who can produce either fish or fruit. The following table shows the daily output of each worker.
| Worker | Fish | Fruit |
| A | 10 | 20 |
| B | 6 | 10 |
| C | 8 | 6 |
| D | 8 | 4 |
| E | 10 | 10 |
(a) Suppose one worker catches fish and four workers pick fruit. For the economy to achieve productive efficiency, which of the five workers must fish?
(b) Does the economy achieve full employment and productive efficiency by producing 26 fish and 20 fruit?
300) An economy consists of five workers, who can produce either fish or fruit. The following table shows the daily output of each worker.
| Worker | Fish | Fruit |
| A | 4 | 4 |
| B | 6 | 2 |
| C | 2 | 1 |
| D | 8 | 6 |
| E | 4 | 1 |
(a) Suppose one worker catches fish and four workers pick fruit. For the economy to achieve productive efficiency, which of the five workers must fish?
(b) Does the economy achieve full employment and productive efficiency by producing 12 fish and 4 fruit?
301) What changes must occur for the potential total output of the economy to grow?
302) Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology.