The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts. FIGURE 32-3
-Refer to Figure 32-3.What is Robinson Crusoe's opportunity cost of coconuts in terms of bananas?

Question

The diagram below shows Robinson Crusoe's annual production possibilities boundary for the production of bananas and coconuts.  FIGURE 32-3
-Refer to Figure 32-3.What is Robinson Crusoe's opportunity cost of coconuts in terms of bananas?

Quizplus · Accepted Answer

Robinson Crusoe's opportunity cost of coconuts in terms of bananas is the amount of bananas he forgoes to produce one more coconut. If the opportunity cost is 2, it means he gives up 2 bananas for each coconut.

The Diagram Below Shows Robinson Crusoe's Annual Production Possibilities Boundary