Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-Refer to Graph 3-1.For Friday, the opportunity cost of 1 kg of coconuts is:
A)2/3 kg of fish
B)3 kg of fish
C)1 kg of fish
D)2 kg of fish

Question

Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-Refer to Graph 3-1.For Friday, the opportunity cost of 1 kg of coconuts is:
A)2/3 kg of fish 
B)3 kg of fish 
C)1 kg of fish 
D)2 kg of fish

Quizplus · Accepted Answer

The opportunity cost of 1 kg of coconuts is the amount of fish that must be given up to produce 1 kg of coconuts. If the graph shows that for every 1 kg of coconuts, 2/3 kg of fish is forgone, then the opportunity cost is 2/3 kg of fish.

Graph 3-1 These Figures Illustrate the Production Possibilities Frontiers for Robinson Crusoe