Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus. Table 1.3
Production Possibilities for Brushes and Combs
$\begin{array}{|l|r|c|c|c|}
\hline \text { Combination } & \begin{array}{c}
\text { Number of } \
\text { Brushes }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Brushes in Terms of } \
\text { Combs }
\end{array} & \begin{array}{c}
\text { Number of } \
\text { Combs }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Combs in Terms of } \
\text { Brushes }
\end{array} \
\hline \mathrm{J} & 0 & & 4 & \
\hline \mathrm{K} & 10 & & 3 & \
\hline \mathrm{L} & 17 && 2 & \
\hline \mathrm{M} & 21 & & 1 & \
\hline \mathrm{N} & 23 & &0 & \
\hline
\end{array}$
Table 1.3
Production Possibilities for Brushes and Combs
$$\begin{array} { | l | c | c | r | r | }
\hline \text { Combination } & \begin{array} { c }
\text { Number of } \
\text { combs }
\end{array} & \begin{array} { c }
\text { Opportunity } \
\text { Cost(Foregone } \
\text { brushes) }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { brushes }
\end{array} & \begin{array} { c }
\text { Opportunity Cost } \
\text { (Foregone combs) }
\end{array} \
\hline \mathrm { J } & 4 & & 0& \text { NA } \
\hline \mathrm { K } & 3 & & 10 & \
\hline \mathrm { L } & 2 & & 17 & \
\hline\mathrm { M} & 1 & & 21 & \
\hline \mathrm { N } & 0 & \text { NA } & 23 & \
\hline
\end{array}$$ On the basis of Table 1.3,what is the opportunity cost of producing at point M rather than point N?
A)23 combs.
B)21 combs.
C)1 brush.
D)2 brushes.

Question

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus. Table 1.3
Production Possibilities for Brushes and Combs
$\begin{array}{|l|r|c|c|c|}
\hline \text { Combination } & \begin{array}{c}
\text { Number of } \
\text { Brushes }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Brushes in Terms of } \
\text { Combs }
\end{array} & \begin{array}{c}
\text { Number of } \
\text { Combs }
\end{array} & \begin{array}{c}
\text { Opportunity Cost of } \
\text { Combs in Terms of } \
\text { Brushes }
\end{array} \
\hline \mathrm{J} & 0 & & 4 & \
\hline \mathrm{K} & 10 & & 3 & \
\hline \mathrm{L} & 17 && 2 & \
\hline \mathrm{M} & 21 & & 1 & \
\hline \mathrm{N} & 23 & &0 & \
\hline
\end{array}$
 Table 1.3
Production Possibilities for Brushes and Combs
$$\begin{array} { | l | c | c | r | r | } 
\hline \text { Combination } & \begin{array} { c } 
\text { Number of } \
\text { combs }
\end{array} & \begin{array} { c } 
\text { Opportunity } \
\text { Cost(Foregone } \
\text { brushes) }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { brushes }
\end{array} & \begin{array} { c } 
\text { Opportunity Cost } \
\text { (Foregone combs) }
\end{array} \
\hline \mathrm { J } & 4 & & 0& \text { NA } \
\hline \mathrm { K } & 3 & & 10 & \
\hline \mathrm { L } & 2 & & 17 & \
\hline\mathrm { M} & 1 & & 21 & \
\hline \mathrm { N } & 0 & \text { NA } & 23 & \
\hline
\end{array}$$ On the basis of Table 1.3,what is the opportunity cost of producing at point M rather than point N?
A)23 combs.
B)21 combs.
C)1 brush.
D)2 brushes.

Quizplus · Accepted Answer

The opportunity cost of producing at point M rather than point N is the difference in the number of combs that could be produced. Moving from N to M increases brush production from 23 to 21, but reduces comb production from 0 to 1. Therefore, the opportunity cost is the foregone production of combs, which is 1 comb. However, since the question asks for the opportunity cost in terms of brushes when moving from M to N, it is the difference in brush production, which is 23 brushes at N minus 21 brushes at M, equaling 2 brushes.

Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes