Refer to Figure 1.7.The cost of producing at point G rather than point D is
A)OA units of food.
B)KL units of clothing.
C)AB units of food.
D)OL units of clothing.

Question

Refer to Figure 1.7.The cost of producing at point G rather than point D is
A)OA units of food. 
B)KL units of clothing. 
C)AB units of food. 
D)OL units of clothing.

Quizplus · Accepted Answer

Producing at point G rather than point D incurs an opportunity cost of AB units of food. Therefore, the best choice would be to produce at point D to minimize opportunity cost.