Figure 2-4
-Refer to Figure 2-4. Suppose the economy is at point A. What is the opportunity cost of increasing the production of toothbrushes by 10 units?

Question

Figure 2-4 
-Refer to Figure 2-4. Suppose the economy is at point A. What is the opportunity cost of increasing the production of toothbrushes by 10 units?

Quizplus · Accepted Answer

The opportunity cost is the amount of toasters that must be given up to produce more toothbrushes. If moving from point A to produce 10 more toothbrushes results in a loss of 5 toasters, then the opportunity cost is 5 toasters.

Figure 2-4 -Refer to Figure 2-4. Suppose the Economy Is at Point