A (very, very small) country produces milk and shirts and its ...

[jace]

A (very, very small) country produces milk and shirts and its production possibilities frontier is in the table above. The nation is currently producing at point B.
 
  What is the opportunity cost of two additional gallons of milk? At point C? At point D? What do your results show?

Question 2

Two firms make most of the consumer alkaline batteries in the country: Duracell and Energizer. The market for batteries is most likely
 
  A) a monopoly.
  B) an oligopoly.
  C) perfectly competitive.
  D) monopolistically competitive.

[amcvicar]

Answer to Question 1

At point B, the opportunity cost of 2 additional gallons of milk is 20 shirts per gallon of milk. At point C, the opportunity cost of 2 additional gallons of milk at 30 shirts per gallon of milk. At point D, the opportunity cost of 2 additional gallons of milk is 40 shirts per gallon of milk. The opportunity cost of 2 additional gallons of milk increases as more milk is produced.

Answer to Question 2

B