Exhibit 2-2 Production possibilities curve In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:

Question

Exhibit 2-2  Production possibilities curve  In Exhibit 2-2, the opportunity cost of coffee when moving from A to B is:

Quizplus · Accepted Answer

Moving from A to D involves shifting production from coffee to hamburgers, resulting in a decrease in coffee production and an increase in hamburger production. The opportunity cost of this shift is the coffee that must be given up in order to produce more hamburgers. Moving from A to B or C involves a shift in production of coffee and hamburgers, but the opportunity cost of coffee is not the same because the amount of coffee given up differs depending on the specific shift. Moving from B to D involves a smaller shift in coffee production and a larger shift in hamburger production, but the opportunity cost of coffee is the same as moving from A to D because the same amount of coffee must be given up in both scenarios.

Exhibit 2-2 Production Possibilities Curve in Exhibit 2-2, the Opportunity