Table 2-5

-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following statements is correct?

Question

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following statements is correct?

Quizplus · Accepted Answer

According to the table, as more cookies are produced, the amount of coffee that can be produced decreases. Therefore, the opportunity cost of producing more cookies (in terms of forgone coffee production) increases, indicating that choice B is the correct answer. Choice A is incorrect because the opportunity cost of cookies does depend on how many pounds of coffee are being produced, as shown in the table. Choice C is incorrect because the opportunity cost of a dozen cookies increases, not decreases, as more cookies are produced. Choice D is also incorrect because the table does not provide information on the opportunity cost of coffee production.

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