Economia

Economics Assigment: The Opportunity Cost of the Bio-Fuel Industry
1) The major determinant for the existence of the Bio-Fuel is that this kind of fuel is less harmful to the atmosphere than themain fuel in the world nowadays: the oil. It is also important to add that oil is a finite resource, and soon or later these reservations are going to finish, and that’s the why Scientificsdeveloped the Bio-Fuel, because of the scarcity of the oil. In the other hand Bio-fuel is a renewable resource.
2) Its most significant opportunity cost is that for producing the Bio-fuel is necessary touse lands which could be used for other type of productions like food (crops), or that could be used for preserve animal’s environment and nature reserves.
3) Food
Food

Y Production ofBio-Fuel.
X Production of Food.
Z Unemployed resources. Any point inside this curve- suggests resources are not being utilized efficiently.
W More than what can be produce, impossible fact. Anypoint outside the curve- not attain able with the current level of resources.
This graphic shows that when there’s more food production in a piece of land the Bio-Fuel production its lower, this isdirectly proportional.

Y Production of Bio-Fuel.
X Production of Food.
Z Unemployed resources. Any point inside this curve- suggests resources are not being utilized efficiently.
W More thanwhat can be produce, impossible fact. Any point outside the curve- not attain able with the current level of resources.
This graphic shows that when there’s more food production in a piece of landthe Bio-Fuel production its lower, this is directly proportional.

Production
Production
W
W
Z
Z
X
X
Y
Y
0
0
Bio-Fuel
Bio-Fuel

4) As Brazil is one of the unique countries thatis going to produce Bio-Fuel , some of the gains this country will have because of the production of Bio-Fuel are:
* A higher national income and because of this one they will have a better...