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Exhibit: Sugar and Freight Trains

-(Exhibit: Sugar and Freight Trains) Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:
A) 19 tons of sugar.
B) 45 tons of sugar.
C) 80 tons of sugar.
D) 3 freight trains.

Question

Use the following to answer question(s): 
Exhibit: Sugar and Freight Trains
 
-(Exhibit: Sugar and Freight Trains) Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be:
A) 19 tons of sugar. 
B) 45 tons of sugar. 
C) 80 tons of sugar. 
D) 3 freight trains.

Quizplus · Accepted Answer

At point C, the economy is producing 3 freight trains and 60 tons of sugar. In order to produce an additional freight train, 20 tons of sugar must be sacrificed. Therefore, the opportunity cost of producing the fourth freight train would be 80 tons of sugar (20 tons x 4 freight trains = 80 tons).

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