Question

Suppose capital and labour are perfect substitutes in production for clothing: 2 units of capital or 2 units of labour produce 1 unit of clothing. Suppose capital and labour are perfect complements in production for food: 1 unit of capital and 1 unit of labour produce 1 unit of food. Suppose the economy has an endowment of 100 units of capital and 200 units of labour. Construct the production possibilities frontier for the economy.(Number the intercepts)

What is the opportunity cost of food in terms of clothing? (Round your answer to two decimal places (e.g., 32.16).)

Opportunity cost:

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