Refer to the information provided in Figure 6.2 below to answer the question(s) that follow. Figure 6.2
-Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is
A) 1/4 of a gardenburger.
B) 1 gardenburger.
C) 2 gardenburgers.
D) changing as Mr. Lingle moves down his budget constraint.

Question

Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.  Figure 6.2
-Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is
A) 1/4 of a gardenburger. 
B) 1 gardenburger. 
C) 2 gardenburgers. 
D) changing as Mr. Lingle moves down his budget constraint.

Quizplus · Accepted Answer

The opportunity cost of one beer is the amount of gardenburgers that must be given up to obtain one more beer. Along a linear budget constraint, this opportunity cost remains constant and is equal to the slope of the budget line. If the slope is -1, then the opportunity cost of one beer is 1 gardenburger.

Refer to the Information Provided in Figure 6