-The above table shows production combinations on a country's production possibilities frontier. The opportunity cost of increasing the production of Y from 16 to 28 units is ________ units of good X per unit of good Y.
A) 12
B) 6
C) 3
D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

Question

-The above table shows production combinations on a country's production possibilities frontier. The opportunity cost of increasing the production of Y from 16 to 28 units is ________ units of good X per unit of good Y.
A) 12 
B) 6 
C) 3 
D) There is no opportunity cost when moving from one point to another along a production possibilities frontier so none of the above answers is correct.

Quizplus · Accepted Answer

The opportunity cost is calculated by the decrease in the production of good X divided by the increase in the production of good Y. If the production of Y increases from 16 to 28 units, and the corresponding decrease in X is 36 units, the opportunity cost is 36/12 = 3 units of X per unit of Y.

-The Above Table Shows Production Combinations on a Country's Production