The opportunity cost of producing a particular good refers to:
A) how much of something else must be given up to produce one additional unit of the good.
B) how much of a good can be produced with the existing technology and resources.
C) the total cost of production, including wages.
D) the marginal cost of production.

Question

Quizplus · Accepted Answer

The opportunity cost of producing a particular good is the cost of giving up producing one unit of another good. Therefore, answer choice A is correct as it refers to how much of something else must be given up to produce one additional unit of the good. Answer choice B is incorrect as it refers to the production possibilities frontier, which is the maximum possible production of two goods with existing resources and technology. Answer choice C is incorrect as it refers to total production costs, which include other factors such as materials and expenses. Answer choice D is incorrect as it refers to the cost of producing one additional unit of the good, not the opportunity cost of producing that good.

The Opportunity Cost of Producing a Particular Good Refers To