The United States must give up the production of 300 motorcycles to produce 15 additional SUVs with the same resources.The opportunity cost of producing 100 motorcycles is _____ SUV(s).

Question

Quizplus · Accepted Answer

To produce 15 SUVs, the US must give up the production of 300 motorcycles. This means the opportunity cost of producing 1 motorcycle is 15/300 = 0.05 SUVs. Therefore, the opportunity cost of producing 100 motorcycles is 0.05 x 100 = 5 SUVs. 
So, the best choice is B.

The United States Must Give Up the Production of 300