Figure 1.2
-If the economy starts at point D in Figure 1.2, what is the opportunity cost of producing an additional 85 units of civilian goods?

Question

Quizplus · Accepted Answer

The opportunity cost of producing additional civilian goods is the amount of military goods that must be sacrificed. If moving from point D results in a loss of 275 units of military goods to produce 85 more units of civilian goods, then the opportunity cost is 275 units of military goods.

Figure 1.2 -If the Economy Starts at Point D in Figure 1.2