Use the following to answer question:

-(Figure: Strawberries and Submarines II)Use Figure: Strawberries and Submarines II.Assume that the economy is operating at point A.The opportunity cost of moving to point C is equal to _____ million tons of strawberries:
A)800
B)200
C)2
D)50

Question

Use the following to answer question:

-(Figure: Strawberries and Submarines II)Use Figure: Strawberries and Submarines II.Assume that the economy is operating at point A.The opportunity cost of moving to point C is equal to _____ million tons of strawberries:
A)800 
B)200 
C)2 
D)50

Quizplus · Accepted Answer

Moving from point A to point C involves a tradeoff of increasing submarine production by 400 (from 200 to 600) and decreasing strawberry production by 2 million tons (from 800 to 798). Thus, the opportunity cost of moving to point C is equal to the decrease in strawberry production, which is 2 million tons.

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