✓Free Economics Q & A Practice1 of 5 free exam-style exercises in this topic
A small economy uses all of its resources efficiently to produce only two goods: food and machines. Its production possibility frontier (PPF) passes through the six combinations \(A\) to \(F\) shown below.
If the economy moves from combination \(C\) to combination \(E\), what is the average opportunity cost of one extra unit of food over this range?