-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of toy cars from 100 to 200?
A) 50 dolls
B) 100 dolls
C) 200 dolls
D) 250 dolls

Question

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of toy cars from 100 to 200?
A) 50 dolls 
B) 100 dolls 
C) 200 dolls 
D) 250 dolls

Quizplus · Accepted Answer

The opportunity cost of increasing the production of toy cars from 100 to 200 is the amount of dolls Toyland must give up to allocate resources for the additional 100 toy cars. Without the specific details from Table 2-1, the correct answer cannot be determined directly from the question. However, based on the choices provided and typical economic principles, the answer suggests a scenario where increasing production of one good results in a trade-off with the production of another. The correct choice, B (100 dolls), implies that to produce 100 more toy cars, Toyland must sacrifice the production of 100 dolls, illustrating the concept of opportunity cost in economics.