Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1
-Refer to Figure 6.1. Along budget constraint AC, the opportunity cost of one hamburger
A) is 1/4 of a hot dog.
B) is 1/2 of a hot dog.
C) is 2 hot dogs.
D) changes as you move down along the budget constraint.

Question

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.  Figure 6.1
-Refer to Figure 6.1. Along budget constraint AC, the opportunity cost of one hamburger
A) is 1/4 of a hot dog. 
B) is 1/2 of a hot dog. 
C) is 2 hot dogs. 
D) changes as you move down along the budget constraint.

Quizplus · Accepted Answer

The opportunity cost of one hamburger along budget constraint AC is the amount of hot dogs that must be given up to obtain one more hamburger. This is determined by the slope of the budget constraint, which, in this case, indicates that 2 hot dogs must be given up for each additional hamburger, making the opportunity cost of one hamburger 2 hot dogs.

Refer to the Information Provided in Figure 6