-The above figure shows the production possibility frontier for a country. What is the opportunity cost per tonne of rice to move from point B to point D?
A) 1/2 of a bottle of wine
B) 500 bottles of wine
C) 2 bottles of wine
D) 1,000 bottles of wine
E) None of the above answers is correct.

Question

-The above figure shows the production possibility frontier for a country. What is the opportunity cost per tonne of rice to move from point B to point D?
A) 1/2 of a bottle of wine 
B) 500 bottles of wine 
C) 2 bottles of wine 
D) 1,000 bottles of wine 
E) None of the above answers is correct.

Quizplus · Accepted Answer

Moving from point B to point D, the country produces 1,000 more tonnes of rice. To do this, it gives up 500,000 bottles of wine. Therefore, the opportunity cost per tonne of rice is 500,000 bottles of wine / 1,000 tonnes of rice = 500 bottles of wine per tonne of rice.

-The Above Figure Shows the Production Possibility Frontier for a Country