Figure 2.2
-Figure 2.2 presents a production possibilities curve for a country that can either produce highways or provide people with medical care in a given year. The opportunity cost of the third new highway built in a year is:

Question

Quizplus · Accepted Answer

According to the production possibilities curve presented in Figure 2.2, to produce the third new highway in a year, the country must give up producing 50,000 units of medical care. This represents the opportunity cost of producing the third new highway. Therefore, the answer is C.

Figure 2.2 -Figure 2.2 Presents a Production Possibilities Curve for a Country