Suppose workers in Transylvania can produce only two goods-yo-yos or sweatsocks.If the Transylvanian currency is the daler,then the opportunity cost of producing yo-yos is measured in terms of _____.

Question

Quizplus · Accepted Answer

The opportunity cost of producing yo-yos in this context is measured in terms of the alternative good that could have been produced with the same resources, which are sweatsocks. This is because opportunity cost is the value of the next best alternative foregone as the result of making a decision. In this case, the next best alternative to producing yo-yos is producing sweatsocks.

Suppose Workers in Transylvania Can Produce Only Two Goods-Yo-Yos or Sweatsocks.If