A zoo cannot have everything it wants. It has to make choices. The zoo committee has decided that it can have several co

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A zoo cannot have everything it wants. It has to make choices.
The zoo committee has decided that it can have several concession
stands. It has to decide how many popcorn stands and how many
cotton candy stands to have scattered around the zoo. The committee
made up a table of the different combinations depending upon what
the committee has determined to be the cost of each stand. Now the
committee has to decide what combination is right.
Concession Stands Popcorn Cotton Candy
Concession Stands
Popcorn
Cotton Candy
0
20
1
18
2
14
3
8
4
0
A. Use the table and graph a Production Possibilities curve on
the graph below
B.Next, label a point of underutilization (inefficiency) for
Popcorn and Cotton Candy above. Call it Point A, Next, label a
point of efficiency. Call it Point B. Last, label a point that is
now unattainable. Call it Point C
C. Look at the table: To get one popcorn stand, how many cotton
candy stands have to be given up (marginal cost)? 20-18 = ?
D. What is the marginal cost of 3 popcorn stands?
E. What is the marginal cost of 4 popcorn stands?