-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car?
A) 2 tons of grain per car
B) 4 tons of grain per car
C) 0.25 tons of grain per car
D) 0.5 tons of grain per car

Question

-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 26th car?
A) 2 tons of grain per car 
B) 4 tons of grain per car 
C) 0.25 tons of grain per car 
D) 0.5 tons of grain per car

Quizplus · Accepted Answer

The opportunity cost of producing the 26th car is the amount of grain that must be given up to produce one more car. If the table shows that moving from 25 to 26 cars results in a decrease of 0.5 tons of grain, then the opportunity cost is 0.5 tons of grain per car.

-The Table Above Lists Six Points on the Production Possibilities