-In the above figure, at point a what is the opportunity cost of producing one more audio tape?
A) 1 video tape per audio tape
B) 2 video tapes per audio tape
C) 14 video tapes per audio tape
D) There is no opportunity cost.

Question

-In the above figure, at point a what is the opportunity cost of producing one more audio tape?
A) 1 video tape per audio tape 
B) 2 video tapes per audio tape 
C) 14 video tapes per audio tape 
D) There is no opportunity cost.

Quizplus · Accepted Answer

The opportunity cost of producing one more audio tape is the amount of video tapes that must be given up to produce that additional audio tape. At point a, the production possibilities frontier shows that 1 video tape must be given up to produce 1 additional audio tape.

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