Consider two points on the PPF: point A,at which there are 50 oranges and 100 apricots,and point B,at which there are 51 oranges and 98 apricots.If the economy is currently at point B,the opportunity cost of moving to point A is
A)2 apricots.
B)1 orange.
C)98 apricots.
D)3 oranges.

Question

Quizplus · Accepted Answer

The opportunity cost of moving from point B to point A is the amount of apricots that must be given up for each additional orange gained. At point B, the economy has 51 oranges and 98 apricots. Moving to point A would result in a gain of 1 orange but a loss of 2 apricots (100-98). Therefore, the opportunity cost of moving to point A is 2 apricots per additional orange gained.

Consider Two Points on the PPF: Point A,at Which There