Refer to the accompanying figure. For Chris, the opportunity cost of removing one bag of trash is planting:

A)25 bulbs.
B)1/25 of a bulb.
C)3 bulbs.
D)1/3 of a bulb.

Question

Refer to the accompanying figure. For Chris, the opportunity cost of removing one bag of trash is planting:     
 
A)25 bulbs. 
B)1/25 of a bulb. 
C)3 bulbs. 
D)1/3 of a bulb.

Quizplus · Accepted Answer

Chris gives up planting 75 bulbs to remove 25 bags of trash, so the opportunity cost of removing 1 bag of trash is planting 3 (= 75/25)bulbs. More generally, the opportunity cost of producing an additional unit of the good on the horizontal axis is the absolute value of the slope of the PPC.

Refer to the Accompanying Figure