Home » The table below shows the production possibilities for the production of capital goods and consumer goods in the country of Harmony.

The table below shows the production possibilities for the production of capital goods and consumer goods in the country of Harmony.

Capital **

Assume that the country is currently producing at output C.

a) Assume capital production increases by 60% . Fill in the new production possibility for capital.

b) If, after the change, Harmony wishes to continue to produce the same amount of consumer goods, how many more capital goods can it now produce? __________

c) What was the opportunity cost of moving to output D before the change in the production of capital goods?

           Give up ______ to get _______

d) ) What is the opportunity cost of moving to output D after the change in the production of capital goods?

           Give up ______ to get _______

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