COUNTRY A'S - PRODUCTION POSSIBILITIES

TRUCK PRODUCTION
POINTS TOTAL LABOR AVAILABLE OUTPUTS OF TRUCKS PER DAY X LABOR NEEDED = PER TRUCK TOTAL LABOR REQUIRED PER TRUCK 10 8 6 4 2 0 LABOR NOT USED FOR TRUCKS 0 2 4 6 8 10

TANK PRODUCTION
POTENTIAL OUTPUT OF TANKS PER DAY 0 2 3 3.8 4.5 5 > INCREASE IN TANK OUTPUT

OPPORTUNITY COST OF TANKS

TRUCKS RELEASED TANKS COST PER TANK CREATED (IN TRUCKS)

A B C D E F

10 10 10 10 10 10

5 4 3 2 1 0

2 2 2 2 2 2

2 1 0.8 0.7 0.5

0 2 2 2 2 2

0 2 1 0.8 0.7 0.5

NA 1.000 2.000 2.500 2.857 4.000

COUNTRY B'S - PRODUCTION POSSIBILITIES

TRUCK PRODUCTION
POINTS TOTAL LABOR AVAILABLE OUTPUTS OF TRUCKS PER DAY X LABOR NEEDED = PER TRUCK TOTAL LABOR REQUIRED PER TRUCK 20 16 12 8 4 0 LABOR NOT USED FOR TRUCKS 0 4 8 12 16 20

TANK PRODUCTION
POTENTIAL OUTPUT OF TANKS PER DAY 0 2 4 6 8 10 > INCREASE IN TANK OUTPUT

OPPORTUNITY COST OF TANKS

TRUCKS RELEASED TANKS COST PER TANK CREATED (IN TRUCKS)

A B C D E F

20 20 20 20 20 20

10 8 6 4 2 0

2 2 2 2 2 2

2 2 2 2 2

0 4 4 4 4 4

0 2 2 2 2 2

NA 2.00 2.00 2.00 2.00 2.00