Table 2-4
Production Possibilities for Batterland

-Refer to Table 2-4.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Question

Table 2-4
Production Possibilities for Batterland
 
-Refer to Table 2-4.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Quizplus · Accepted Answer

The opportunity cost of increasing the production of pancakes from 150 to 300 is the amount of waffles that must be given up to produce more pancakes. Moving from point A to point B in the production possibilities frontier means producing 150 more pancakes, but giving up 75 waffles (moving from 525 to 450). Therefore, the answer is A) 75 waffles.

Table 2-4 Production Possibilities for Batterland