PPF F G 0 1 2 3 4 5 6 7 8 9 10 10 9 8 7 6 5 4 3 2 1 0 Beef (Thousands of tons) Automobiles (Thousands) 2, 9 The opportunity cost of the first 2,000 automobiles produced is 1,000.00 tons of beef. Between which points is the opportunity cost per thousand automobiles highest? A and B B and C C and D D and E The opportunity cost per thousand tons of beef is the highest between pointsA and B Using your answers in the preceding parts, you can see that the opportunity cost of 1,000 additional automobiles between points A and B isless than the opportunity cost of 1,000 additional automobiles between points D and E. This reflects thelaw of increasing opportunity costs . On the previous graph, use the grey point (star symbol) to plot point F where the nation is producing 2,000 tons of beef and 2,000 automobiles. Then use the black point (cross symbol) to plot point G where the nation is producing 6,000 tons of beef and 6,000 automobiles. Point F illustrates an inefficient output level because the nation isoverproducing , as it could satisfy more of society’s wants if it were producing at some point along the PPC. Point G illustrates an unattainable output level because it is the nation’s present production capabilities.