-In the figure above, moving from point B to point D
A) has an opportunity cost of one ton of butter per month.
B) has an opportunity cost of one ton of guns per month.
C) requires an increase in technology.
D) is impossible.

Question

-In the figure above, moving from point B to point D
A) has an opportunity cost of one ton of butter per month. 
B) has an opportunity cost of one ton of guns per month. 
C) requires an increase in technology. 
D) is impossible.

Quizplus · Accepted Answer

Moving from point B to point D implies reallocating resources from producing guns to producing more butter, thus the opportunity cost is the amount of guns forgone, which is one ton of butter per month.

-In the Figure Above, Moving from Point B to Point