-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of toy cars from 0 to 100?
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 0 to 100?
A) 50 dolls 
B) 100 dolls 
C) 200 dolls 
D) 250 dolls

Quizplus · Accepted Answer

The opportunity cost of producing more of one good is the amount of the other good that must be given up. In this case, to increase the production of toy cars from 0 to 100, Toyland must reduce its production of dolls by 50, according to the information provided in the hypothetical Table 2-1.