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 pound of beef is ________ computer(s).

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 pound of beef is ________ computer(s).

Quizplus · Accepted Answer

In the time it takes Art to produce 1 pound of beef, she can produce 1/100 of a computer.

The Following Graph Shows the Production Possibilities Curve for the Economy