Exhibit 2-1 Production possibilities curve data Consumption Goods Capital Goods
10 0
9 1
7 2
4 3
0 4
In Exhibit 2-1, the opportunity cost of producing the fourth unit of capital is
1 unit of consumption goods
2 units of consumption goods
4 units of consumption goods
there is not enough information to estimate the opportunity cost

Acompany manufactures x units of product a and y units of product b, on two machines, i and ii. it has been determined that the company will realize a profit of $3 on each unit of product a and $4 on each unit of product b. to manufacture a unit of product a requires 7 min on machine i and 5 min on machine ii. to manufacture a unit of product b requires 8 min on mchine i and 5 min on machine ii. there are 175 min available on machine i and 125 min available on machine ii in each work shift. how many units of a product should be produced in each shift to maximize the company's profit p?