Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 10

Redraw Figure 1,but this time identify a different set of points along the frontier. Starting at point F (5,000 tanks,zero production of wheat),have each point you select show equal increments in the quantity of wheat produced. For example,a new point H should correspond to 200,000 bushels of wheat,point J to 400,000 bushels,point K to 600,000 bushels,and so on. Now observe what happens to the opportunity cost of "200,000 more bushels of wheat" as you move leftward and upward along this PPF. Does the law of increasing opportunity cost apply to the production of wheat? Explain briefly.
Figure 1 The Production Possibilities Frontier