-The above table shows the production possibilities frontier for the economy of Arkadia. The opportunity cost of increasing cheese production from 500 tons of cheese to 750 tons of cheese is
A) 700 gallons of wine.
B) 100 gallons of wine.
C) 250 tons of cheese.
D) 300 gallons of wine.

Question

-The above table shows the production possibilities frontier for the economy of Arkadia. The opportunity cost of increasing cheese production from 500 tons of cheese to 750 tons of cheese is
A) 700 gallons of wine. 
B) 100 gallons of wine. 
C) 250 tons of cheese. 
D) 300 gallons of wine.

Quizplus · Accepted Answer

The opportunity cost is the amount of wine that must be given up to produce more cheese. If increasing cheese production from 500 to 750 tons results in a decrease of 300 gallons of wine, then the opportunity cost is 300 gallons of wine.

-The Above Table Shows the Production Possibilities Frontier for the Economy