Trade-Offs and Trade Work It Out: Assume the economy of Atlantis only produces fish (point F). Calculate the opportunity cost of producing potatoes in 200 pound increments. Maximum annual Quantity of potatoes Quantity of fish output options (pounds) (pounds)A 1000 0B 800 300C 600 500D 400 600E 200 650F 0 675a. Opportunity cost of increasing production from 0 pounds to 200 pounds of potatoes: pounds of fish. b. Opportunity cost of increasing production from 200 pounds to 400 pounds of potatoes: pounds of fish. c. Opportunity cost of increasing production from 400 pounds to 600 pounds of potatoes: pounds of fish. d. Opportunity cost of increasing production from 600 pounds to 800 pounds of potatoes: pounds of fish. e. Opportunity cost of increasing production from 800 pounds to 1,000 pounds of potatoes: pounds of fish.

a. Opportunity cost of increasing production from 0 pounds to 200 pounds of potatoes: 25 pounds of fish.

b. Opportunity cost of increasing production from 200 pounds to 400 pounds of potatoes: 50 pounds of fish.

c. Opportunity cost of increasing production from 400 pounds to 600 pounds of potatoes: 100 pounds of fish.

d. Opportunity cost of increasing production from 600 pounds to 800 pounds of potatoes: 200 pounds of fish.

e. Opportunity cost of increasing production from 800 pounds to 1,000 pounds of potatoes: 300 pounds of fish.

Explanation:

       Quantity of potatoes      Quantity of fish

A            1000                                 0

B             800                               300

C             600                               500

D             400                               600

E             200                                650

F                 0                                 675   (Atlantis)

Opportunity costs refer to the extra costs or benefits lost resulting from choosing one investment or activity over another alternative. In this case, if Atlantis decides not to specialize on ly in fish and wants to start producing potatoes, it will need to produce less fish in order to produce more potatoes.  

a naked warrant, also known as a covered warrant, is a derivative that allows the holder to buy or sell a security, such as a bond or share. unlike a normal warrant, it is not attached to a newly issued bond or preferred stock.

unsecured bonds: they are not secured by a specific asset, but rather by "the full faith and credit" of the issuer. in other words, the investor has the issuer's promise to repay but has no claim on specific collateral. debt, such as unsecured bond debt, is said to be “subordinated,” or junior, to secured debt.