-The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of increasing the production of X from 0 to 3 units?
A) 0 units of good Y
B) 3 units of good Y
C) 40 units of good Y
D) 4/3 units of good Y for every one unit of good X

Question

-The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of increasing the production of X from 0 to 3 units?
A) 0 units of good Y 
B) 3 units of good Y 
C) 40 units of good Y 
D) 4/3 units of good Y for every one unit of good X

Quizplus · Accepted Answer

The opportunity cost of increasing the production of X from 0 to 3 units is 40 units of good Y. This is because the production possibilities frontier shows that the country can produce either 40 units of good Y or 3 units of good X. Therefore, the opportunity cost of producing 3 units of good X is 40 units of good Y.

-The Above Table Shows Production Combinations on a Country's Production