Use the following to answer questions:
Figure: Sofas and Windows
-(Figure: Sofas and Windows) In the PPF diagram, what is the opportunity cost of producing an additional sofa?
A) 1 1/4 sofas
B) 4/5 of a window
C) 1 window
D) 4/5 of a sofa

Question

Use the following to answer questions:
Figure: Sofas and Windows 
-(Figure: Sofas and Windows) In the PPF diagram, what is the opportunity cost of producing an additional sofa?
A) 1 1/4 sofas 
B) 4/5 of a window 
C) 1 window 
D) 4/5 of a sofa

Quizplus · Accepted Answer

The opportunity cost of producing an additional sofa is the amount of windows that must be given up, which is 1 window according to the PPF diagram.

Use the Following to Answer Questions