Exhibit 2-4
Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is

Question

Exhibit 2-4 
Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is

Quizplus · Accepted Answer

The opportunity cost of moving from point A to point B is the number of fax machines that must be given up in order to produce an additional 20,000 copiers. Looking at the graph, we can see that the slope of the production possibilities frontier between points A and B is -1/2, meaning that for every 2,000 copiers produced, 1,000 fax machines must be given up. Therefore, to produce an additional 20,000 copiers (moving from point A to point B), the opportunity cost is 10,000 fax machines (20,000 copiers / 2 * 1,000 fax machines per 2,000 copiers).

Exhibit 2-4 Refer to Exhibit 2-4. the Opportunity Cost of Moving from of Moving