-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 250?
A) 50 toy cars
B) 100 toy cars
C) 150 toy cars
D) 200 toy cars

Question

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 250?
A) 50 toy cars 
B) 100 toy cars 
C) 150 toy cars 
D) 200 toy cars

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, increasing the production of dolls from 0 to 250 results in a reduction of toy cars by 100, based on the information provided in the hypothetical Table 2-1.