Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year.The opportunity cost of the second new highway built in a year is:

Question

Quizplus · Accepted Answer

The opportunity cost of the second new highway built in a year is 30,000 people provided with medical care. This is because the production possibilities curve shows that the country can either produce 2 highways and 0 people provided with medical care, or 1 highway and 30,000 people provided with medical care. Therefore, the opportunity cost of the second highway is 30,000 people provided with medical care.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country