Exhibit 2-1 Production possibilities curve data

Consumption
Goods

Capital
Goods

10

0

9

1

7

2

4

3

0

4

-In Exhibit 2-1, according to the information, the opportunity cost of producing 3 units of capital is:

Question

Exhibit 2-1 Production possibilities curve data

Consumption Goods	Capital Goods
10	0
9	1
7	2
4	3
0	4

-In Exhibit 2-1, according to the information, the opportunity cost of producing 3 units of capital is:

Quizplus · Accepted Answer

The opportunity cost of producing 3 units of capital is 3 units of consumption goods. This is because, as the production possibilities curve shows, in order to produce 3 units of capital, production of consumption goods must decrease from 7 units to 4 units.

Exhibit 2-1 Production Possibilities Curve Data