If Britain, at the point where it is currently producing, must give up the production of 75 hats to produce 25 additional sweaters, the opportunity cost of producing 4 sweaters is _______ hats.

Question

Quizplus · Accepted Answer

The opportunity cost of producing 25 sweaters is 75 hats, so for 1 sweater, it is 75/25 = 3 hats. Therefore, for 4 sweaters, the opportunity cost is 4 * 3 = 12 hats.

If Britain, at the Point Where It Is Currently Producing