Exhibit 29-1
-According to the data in Exhibit 29-1, the opportunity cost of producing one more unit of good A in China is

Question

Exhibit 29-1 
-According to the data in Exhibit 29-1, the opportunity cost of producing one more unit of good A in China is

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of good A in China is 2 units of good B, as shown by the slope of the production possibility frontier. Therefore, the best choice is to produce good A until its marginal benefit equals its marginal cost, which occurs at a quantity of 3. At this quantity, the opportunity cost of producing one more unit of good A is exactly 1/2 unit of good B.

Exhibit 29-1 -According to the Data in Exhibit 29-1, the Opportunity Cost