-The table above represents different points along a production possibilities curve. What is the marginal cost of moving from 2 bushels to 3 bushels of beans?
A) 9 bushels of carrots per bushel of beans
B) 12 bushels of carrots per bushel of beans
C) 3 bushels of carrots per bushel of beans
D) 21 bushels of carrots per bushel of beans

Question

-The table above represents different points along a production possibilities curve. What is the marginal cost of moving from 2 bushels to 3 bushels of beans?
A) 9 bushels of carrots per bushel of beans 
B) 12 bushels of carrots per bushel of beans 
C) 3 bushels of carrots per bushel of beans 
D) 21 bushels of carrots per bushel of beans

Quizplus · Accepted Answer

The marginal cost is the opportunity cost of producing one more unit of a good. If moving from 2 to 3 bushels of beans results in a decrease of 3 bushels of carrots, then the marginal cost is 3 bushels of carrots per bushel of beans.

-The Table Above Represents Different Points Along a Production Possibilities