Final answer:
The question refers to calculating the opportunity cost of producing an additional unit of steel in terms of wheat based on a production possibilities schedule. The opportunity cost is determined by the decrease in wheat production at each point in the schedule as more steel is produced, which is represented in a PPF graph.
Step-by-step explanation:
The question is asking about the opportunity cost of producing steel in terms of wheat for a nation based on given data from a production possibilities schedule, which shows different combinations of the two products that the nation can produce.
Moving from one production possibility to the next, we can calculate the opportunity cost by determining the amount of wheat forgone for each additional unit of steel produced. This concept is represented by the production possibilities frontier (PPF), which is a diagram that shows the maximum combinations of goods (like steel and wheat) that an economy can produce given its available resources and technology.
When assessing the opportunity cost of producing additional units of steel, we look at the decrease in wheat production between each point in the production possibilities schedule. For example, moving from point A (0 Steel, 100 Wheat) to point B (1 Steel, 90 Wheat), the opportunity cost of one unit of steel is the 10 units of wheat forgone (100 - 90). Similarly, each subsequent move from B to C, C to D, and so on, will show the amount of wheat that must be given up to produce additional steel.