-In the above figure, at point b what is the opportunity cost of producing 2 more CDs?
A) 1 DVD per CD.
B) 1/2 DVD per CD.
C) 6 DVDs per CD.
D) There is no opportunity cost.

Question

-In the above figure, at point b what is the opportunity cost of producing 2 more CDs?
A) 1 DVD per CD. 
B) 1/2 DVD per CD. 
C) 6 DVDs per CD. 
D) There is no opportunity cost.

Quizplus · Accepted Answer

The opportunity cost is the amount of DVDs that must be given up to produce more CDs. If producing 2 more CDs costs 1 DVD, then the opportunity cost per CD is 1/2 DVD.

-In the Above Figure, at Point B What Is the Opportunity