-In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is
A) half a gallon.
B) 1 gallon.
C) 3 gallons.
D) 4 gallons.

Question

-In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is
A) half a gallon. 
B) 1 gallon. 
C) 3 gallons. 
D) 4 gallons.

Quizplus · Accepted Answer

The opportunity cost of producing an additional gallon of yogurt (from 2 to 3 gallons) is the amount of ice cream forgone. In this scenario, the production of ice cream decreases from 4 gallons to 3 gallons, which means 1 gallon of ice cream is the opportunity cost of increasing yogurt production by 1 gallon.

-In the Figure Above, If the Quantity of Yogurt Produced