In Exhibit 113, opportunity costs in equilibrium equal

Name: In Exhibit 113, opportunity costs in equilibrium equal
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Question

In Exhibit 11­3, opportunity costs in equilibrium equal

Quizplus · Accepted Answer

In equilibrium, the opportunity cost of producing one unit of A is equal to the opportunity cost of producing one unit of B. Therefore, the opportunity cost of producing 100 units of A (which is the same as the amount produced in equilibrium) is $0, since no resources are being diverted from the production of B to produce more A.

In Exhibit 11­3, Opportunity Costs in Equilibrium Equal

In Exhibit 113, Opportunity Costs in Equilibrium Equal