Exhibit 1

-Refer to Exhibit 1. If the economy is operating at point C, the opportunity cost of producing an additional 15 units of biscuits is

Question

Exhibit 1
 
-Refer to Exhibit 1. If the economy is operating at point C, the opportunity cost of producing an additional 15 units of biscuits is

Quizplus · Accepted Answer

At point C, the economy is producing 30 units of buns and 15 units of biscuits. To produce an additional 15 units of biscuits, the economy would need to move to point D, which would require a decrease in the production of 20 units of buns (from 30 to 10). Therefore, the opportunity cost of producing an additional 15 units of biscuits is 20 units of buns. The correct answer is C.

Exhibit 1 -Refer to Exhibit 1. If the Economy Is Operating at Economy