Refer to the figure below. The opportunity cost of making an additional salad:
A)remains constant regardless of how many salads are made.
B)increases as the number of salads increases.
C)decreases as the number of pizzas decreases.
D)decreases as the number of salads increases.

Question

Refer to the figure below. The opportunity cost of making an additional salad: 
A)remains constant regardless of how many salads are made. 
B)increases as the number of salads increases. 
C)decreases as the number of pizzas decreases. 
D)decreases as the number of salads increases.

Quizplus · Accepted Answer

As the production of salads increases, the opportunity cost of producing an additional salad increases as well. This is because the production of salads requires giving up the production of pizzas, and the more salads are produced, the larger the amount of pizzas that must be given up, resulting in an increase in opportunity cost. Therefore, it is not efficient to produce large quantities of salads beyond a certain point, and the best choice is to produce a smaller quantity of salads and use the remaining resources to produce pizzas.

Refer to the Figure Below