The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year. Art's opportunity cost of producing one computer is ________ pounds of beef.

Question

The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.  Art's opportunity cost of producing one computer is ________ pounds of beef.

Quizplus · Accepted Answer

In the time it takes Art to produce 1 computer, he can produce 100/1 = 100 pounds of beef.

The Following Graph Shows the Production Possibilities Curve for the Economy