Explain how to calculate the slope of a non-linear function. What ...

[maychende]

Explain how to calculate the slope of a non-linear function. What does the slope measure?
 
  What will be an ideal response?

Question 2

Suppose that there are two goods that a small island nation can produce  coconuts and breadfruit.
 
  If the inputs for both goods are perfectly interchangeable and there is never a rise or fall in opportunity cost explain what the production possibilities frontier should look like and why.

[ebenov]

Answer to Question 1

Since the slope of a non-linear function changes throughout the function one can only measure slope at a specific point along the function. Essentially you would take a line a make it tangent to the point that you want to measure and calculate the slope of that tangent line. The slope of that tangent line will be equivalent to the slope at that point on the function.

Answer to Question 2

Production possibilities frontier are typically concave to the origin which reflects the law of increasing opportunity cost. In the present example this is not the case. The opportunity cost is constant which would lead to a downward-sloping but linear production possibilities frontier.

[maychende]

Thank you

[ebenov]

No problemo