Figure 2-10
Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?
A) 50 baseballs
B) 100 baseballs
C) 100 bananas
D) 300 bananas

Question

Figure 2-10 
Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?
A) 50 baseballs 
B) 100 baseballs 
C) 100 bananas 
D) 300 bananas

Quizplus · Accepted Answer

The opportunity cost of moving from point A to point C is the number of bananas you would have to give up in order to produce an additional 50 baseballs. Looking at the graph, you would have to give up 100 bananas (from producing 200 to producing 100) in order to produce an additional 50 baseballs (from 50 to 100). Therefore, the best choice is to produce at point B, where you can produce 100 baseballs and 100 bananas without giving up any of either.

Figure 2-10 Refer to Figure 2-10. What Is the Opportunity Cost of Opportunity