Use the figure below to answer the following questions.
Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A, the opportunity cost of producing 3 more units of X is
A)zero units of Y.
B)30 units of Y.
C)20 units of Y.
D)10 units of Y.
E)3 units of X.

Question

Use the figure below to answer the following questions.
  Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A, the opportunity cost of producing 3 more units of X is
A)zero units of Y. 
B)30 units of Y. 
C)20 units of Y. 
D)10 units of Y. 
E)3 units of X.

Quizplus · Accepted Answer

The opportunity cost of producing more units of one good is the amount of the other good that must be given up. If moving from point A to produce 3 more units of X results in a decrease of 20 units of Y, then the opportunity cost is 20 units of Y.

Use the Figure Below to Answer the Following Questions