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 fourth new highway built in a year is:

Question

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit (fourth highway) is the amount of the other good (medical care) that must be given up. According to the production possibilities curve, building the fourth highway requires sacrificing medical care for 70,000 people.

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