Table 2-3
Production Possibilities for Libraryland

-Refer to Table 2-3.What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300?

Question

Table 2-3
Production Possibilities for Libraryland
 
-Refer to Table 2-3.What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300?

Quizplus · Accepted Answer

In order to increase the production of books from 200 to 300, Libraryland must reduce production of magazines from 400 to 250. The difference between the two quantities of magazines is the opportunity cost, which is 150 magazines (400-250).

Table 2-3 Production Possibilities for Libraryland