What is the opportunity cost of obtaining more of one good, as it relates to the production possibilities frontier?
A) the amount of the other good that must be given up
B) the market price of the additional amount produced
C) the amount of resources that must be devoted to its production
D) the number of dollars that must be spent to produce it

Question

Quizplus · Accepted Answer

The opportunity cost of obtaining more of one good is the amount of the other good that must be given up, as depicted by the production possibilities frontier. This is because the production possibilities frontier shows the maximum possible combinations of two goods that can be produced with a given amount of resources. Thus, producing more of one good means producing less of the other good, which represents the opportunity cost.

What Is the Opportunity Cost of Obtaining More of One