Exhibit 1 Refer to Exhibit 1. If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is

Question

Exhibit 1  ​ Refer to Exhibit 1. If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is

Quizplus · Accepted Answer

At point C, the economy is producing 30 units of bacon and 50 units of eggs. The opportunity cost of producing an additional 15 units of bacon is the amount of eggs that must be given up. By moving from point C to point B, 10 units of bacon must be given up to produce an additional 15 units of eggs. Therefore, the opportunity cost of producing 15 units of bacon is 20 units of eggs (C).

Exhibit 1 ​ Refer to Exhibit 1

Exhibit 1 Refer to Exhibit 1