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 increasing production of Y to 80 units is
A)3 units of X.
B)10 units of Y.
C)80 units of Y.
D)1 unit of X.
E)2 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 increasing production of Y to 80 units is
A)3 units of X. 
B)10 units of Y. 
C)80 units of Y. 
D)1 unit of X. 
E)2 units of X.

Quizplus · Accepted Answer

At point A, to increase the production of Y to 80 units, the economy must reduce its production of X by 3 units. This is the opportunity cost of increasing Y's production to 80 units at point A.

Use the Figure Below to Answer the Following Questions