$$\begin{array} { | l | l | l | }
\hline \text { Point } & \begin{array} { l }
\text { Production of } \
X
\end{array} & \begin{array} { l }
\text { Production of } \
Y
\end{array} \
\hline \text { A } & 0 & 40 \
\hline B & 3 & 36 \
\hline \text { C } & 6 & 28 \
\hline \text { D } & 9 & 16 \
\hline \text { E } & 12 & 0 \
\hline
\end{array}$$
-The above table shows production combinations on a country?s production possibilities frontier. The opportunity cost of increasing the production of Y from 16 to 28 units is units of good X per unit of good Y.
A) 12
B) 3
C) 6
D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

Question

$$\begin{array} { | l | l | l | } 
\hline \text { Point } & \begin{array} { l } 
\text { Production of } \
X
\end{array} & \begin{array} { l } 
\text { Production of } \
Y
\end{array} \
\hline \text { A } & 0 & 40 \
\hline B & 3 & 36 \
\hline \text { C } & 6 & 28 \
\hline \text { D } & 9 & 16 \
\hline \text { E } & 12 & 0 \
\hline
\end{array}$$
-The above table shows production combinations on a country?s production possibilities frontier. The opportunity cost of increasing the production of Y from 16 to 28 units is units of good X per unit of good Y.
A) 12
B) 3
C) 6
D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

Quizplus · Accepted Answer

The opportunity cost is calculated by the decrease in production of X divided by the increase in production of Y. Moving from 16 to 28 units of Y, X decreases from 9 to 6, so the opportunity cost is (9-6)/(28-16) = 3/12 = 0.25 units of X per unit of Y.

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