Table 2-5

-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?

Question

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?

Quizplus · Accepted Answer

To increase coffee production from 350 pounds to 650 pounds, the economy must give up some production of cookies. Looking at the table, we can see that to increase coffee production by 300 pounds (from 350 to 650), the economy must decrease cookie production by 200 dozen (from 600 to 400). Therefore, the opportunity cost of increasing coffee production by 300 pounds is 200 dozen cookies. Choice C) is the correct answer.

Table 2-5 -Refer to Table 2-5.Table 2-5 Shows One Set of Production