The Table Below Is a Production Possibility Table for the Fictional

Essay

The table below is a production possibility table for the fictional country of Myopia. Use it to construct the corresponding production possibility curve in the quadrant below. (Label the axes.)
$$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Guns } & \text { Butter } \\\hline 0 & 20 \\\hline 5 & 15 \\\hline 10 & 14 \\\hline 15 & 8 \\\hline 20 & 0 \\\hline\end{array}\\\end{array}$$ (a) Explain the meaning of a production possibilities curve.
(b) What is assumed to be constant when we draw that curve?
(c) How is a point on the curve different from (1) a point inside the curve or (2) a point outside the curve?
(d) How does this curve illustrate the concept of opportunity cost?
(e) How does it illustrate the principle of increasing marginal opportunity cost?