Use the figure below to answer the following questions. Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A,the opportunity cost of producing 3 more units of X is
A)30 units of Y.
B)3 units of X.
C)20 units of Y.
D)10 units of Y.
E)zero units of Y.

Question

Use the figure below to answer the following questions.  Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A,the opportunity cost of producing 3 more units of X is
A)30 units of Y. 
B)3 units of X. 
C)20 units of Y. 
D)10 units of Y. 
E)zero units of Y.

Quizplus · Accepted Answer

Moving from point A to produce 3 more units of X involves giving up 20 units of Y, which is the definition of opportunity cost in this context.

Use the Figure Below to Answer the Following Questions