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1-1 

ECON 102

ProductionPossibilities Frontier  

Dr. Jose J. Vazquez PhDEconomics Department

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Suppose you have a very efficient

study system. As you increase the

hours you study for an ECON exam

the opportunity costs of studying

for the exam:a) Increase

b) Decrease

c) Stay the same

d) May increase or decrease

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1) What it means

to be“efficient”

?

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2) How costs 

change with changeproduction?

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3) What is the effect

of technologicalchange?

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A)

B) C)

D)

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x

Y

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1 2 3

Airplanes 1Clean Plates 1

Which round was the mostefficient?

a) Round 1

b) Round 2

c) Both equally efficient

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The costs of making airplanes

 ________ as one made more

airplanes.

a) Increased

b) Decreased

c) Did not change

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1) What it means

to be“efficient”

?

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2) How costs 

change with changeproduction?

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3) What is the effect

of technologicalchange?

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More Problems for 

Extra Practice 

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Who should produce the first lb of fish?

a) Jean

b) Joec) Jerry

d) Jack

In one day each can produce:

Jean  Joe  Jerry  Jack 

Fish (lbs) 4 3 2 1Berries (lbs) 1 2 3 4

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What is the opportunity costs of 

producing the first lb of fish?a) 1/4 pound of berries

b) 2/3 pounds of berries

c) 1.5 pounds of berries

d) 4 pounds of berries

In one day each can produce:

Jean  Joe  Jerry  Jack 

Fish (lbs) 4 3 2 1Berries (lbs) 1 2 3 4

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

2 9.50 -0.25 -4.00

3 9.25 -0.25 -4.00

4 9.00 -0.25 -4.00

5 8.33 -0.67 -1.50

6 7.67 -0.67 -1.50

7 7.00 -0.67 -1.50

8 5.50 -1.50 -0.67

9 4.00 -1.50 -0.67

10 0.00 -4.00 -0.25

OC of 1 lb fish =1 lbs Berries

4 lbs Fish=

1/4 lbs Berries

1 lbs Fish

9.75 Berries = 10 Berries  – (¼ Berries * 1 Berries)Berries Berries Berries Berries

BerriesBerries

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

3 9.25 -0.25 -4.00

4 9.00 -0.25 -4.00

5 8.33 -0.67 -1.50

6 7.67 -0.67 -1.50

7 7.00 -0.67 -1.50

8 5.50 -1.50 -0.67

9 4.00 -1.50 -0.67

10 0.00 -4.00 -0.25

1 lbs Berries

4 lbs Fish=

1/4 lbs Berries

1 lbs Fish

9.50 Berries = 10 Berries  – (¼ Berries * 2 Berries)

OC of 1 lb fish =

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

Jean 3 9.25 -0.25 -4.00

4 9.00 -0.25 -4.00

5 8.33 -0.67 -1.50

6 7.67 -0.67 -1.50

7 7.00 -0.67 -1.50

8 5.50 -1.50 -0.67

9 4.00 -1.50 -0.67

10 0.00 -4.00 -0.25

1 lbs Berries4 lbs Fish

= 1/4 lbs Berries1 lbs Fish

9.25 Berries = 10 Berries  – (¼ Berries * 3 Berries)

OC of 1 lb fish =

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

Jean 3 9.25 -0.25 -4.00

Jean 4 9.00 -0.25 -4.00

5 8.33 -0.67 -1.50

6 7.67 -0.67 -1.50

7 7.00 -0.67 -1.50

8 5.50 -1.50 -0.67

9 4.00 -1.50 -0.67

10 0.00 -4.00 -0.25

1 lbs Berries4 lbs Fish

= 1/4 lbs Berries1 lbs Fish

9.00Berries = 10 Berries  – (¼ Berries * 4 Berries)

OC of 1 lb fish =

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

Jean 3 9.25 -0.25 -4.00

Jean 4 9.00 -0.25 -4.00

Jean, Joe5 8.33 -0.67 -1.50

6 7.67 -0.67 -1.50

7 7.00 -0.67 -1.50

8 5.50 -1.50 -0.67

9 4.00 -1.50 -0.67

10 0.00 -4.00 -0.25

2 lbs Berries

3 lbs Fish=

2/3 lbs Berries

1 lbs Fish

8.33 Berries = 9 Berries  – (2/3 Berries * 1 Berries)

OC of 1 lb fish =2/3

2/3

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

Jean 3 9.25 -0.25 -4.00

Jean 4 9.00 -0.25 -4.00

Jean, Joe5 8.33 -0.67 -1.50

Jean, Joe 6 7.67 -0.67 -1.50

Jean, Joe 7 7.00 -0.67 -1.50

All but Jack 8 5.50 -1.50 -0.67

All but Jack 9 4.00 -1.50 -0.67

All 10 0.00 -4.00 -0.25

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In one day each can produce:

Jean Joe Jerry Jack 

Fish (lbs) 4 3 2 1

Berries (lbs) 1 2 3 4

Who Produces

Fish? Fish

(lbs) 

Berries

(lbs) 

Opportunity

Cost of 1 lb of 

Fish

Opportunity

Cost of 1 lb of 

Berries

0 10.00-0.25 -4.00

Jean 1 9.75 -0.25 -4.00

Jean 2 9.50 -0.25 -4.00

Jean 3 9.25 -0.25 -4.00

Jean 4 9.00 -0.25 -4.00

Jean, Joe5 8.33 -0.67 -1.50

Jean, Joe 6 7.67 -0.67 -1.50

Jean, Joe 7 7.00 -0.67 -1.50

All but Jack 8 5.50 -1.50 -0.67

All but Jack 9 4.00 -1.50 -0.67

All 10 0.00 -4.00 -0.25

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0

2

4

6

8

10

12

0 2 4 6 8 10 12

lbs Berries

lbs Fish