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Assume that the following table describes the production possibilities frontier (PPF) confronting an economy. Using that information:
Potential output combinations homeless shelters hospitals
A 25 0
B 21 1
C 16 2
D 9 3
E 0 4
(a) What is the opportunity cost of producing a third unit of hospitals?
(b) What is the opportunity cost of producing a fifth unit of homeless shelters?
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Does this give you some sense of security that the limited liability of a corporation is good so long as we do not violate any of the things that could cause the piercing of the corporate veil?
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