(Table) Suppose an economy can produce the combinations of bread and cookies shown in the table. The opportunity cost of increasing bread production from 25 to 50 loaves is _____, and the opportunity cost of increasing bread production from 50 to 75 loaves is _____.

Question

Quizplus · Accepted Answer

The opportunity cost of increasing bread production from 25 to 50 loaves is the difference in the number of cookies that could have been produced instead. This is 15 dozen cookies (30 - 15 = 15).
The opportunity cost of increasing bread production from 50 to 75 loaves is the difference in the number of cookies that could have been produced instead. This is still 15 dozen cookies (45 - 30 = 15). Therefore, the opportunity cost remains constant.

(Table) Suppose an Economy Can Produce the Combinations of Bread