$$\begin{array} { | l | l | l | }
\hline \text { Point } & \begin{array} { l }
\text { Production of grain } \
\text { (tons) }
\end{array} & \begin{array} { l }
\text { Production of cars } \
\text { (cars) }
\end{array} \
\hline \text { A } & 0 & 30 \
\hline \text { B } & 2 & 28 \
\hline \text { C } & 4 & 24 \
\hline \text { D } & 6 & 18 \
\hline \text { E } & 8 & 10 \
\hline \text { F } & 10 & 0 \
\hline
\end{array}$$
-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car?
A) 2 tons of grain per car
B) 0.25 tons of grain per car
C) 4 tons of grain per car
D) 0.5 tons of grain per car

Question

$$\begin{array} { | l | l | l | } 
\hline \text { Point } & \begin{array} { l } 
\text { Production of grain } \
\text { (tons) }
\end{array} & \begin{array} { l } 
\text { Production of cars } \
\text { (cars) }
\end{array} \
\hline \text { A } & 0 & 30 \
\hline \text { B } & 2 & 28 \
\hline \text { C } & 4 & 24 \
\hline \text { D } & 6 & 18 \
\hline \text { E } & 8 & 10 \
\hline \text { F } & 10 & 0 \
\hline
\end{array}$$
-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car?
A) 2 tons of grain per car
B) 0.25 tons of grain per car
C) 4 tons of grain per car
D) 0.5 tons of grain per car

Quizplus · Accepted Answer

The opportunity cost of producing the 26th car is calculated by looking at the change in grain production between points B (2 tons, 28 cars) and C (4 tons, 24 cars). The opportunity cost is (4-2) tons of grain / (28-24) cars = 0.5 tons of grain per car.

-The Table Above Lists Six Points on the Production Possibilities