The figure given below shows the production possibilities frontier for mufflers and socks. The opportunity cost of moving from point b to d is:

A) 30 mufflers.
B) 50 mufflers.
C) 100 socks.
D) 150 socks.
E) 250 socks.

Question

The figure given below shows the production possibilities frontier for mufflers and socks. The opportunity cost of moving from point b to d is:

A) 30 mufflers. 
B) 50 mufflers. 
C) 100 socks. 
D) 150 socks. 
E) 250 socks.

Quizplus · Accepted Answer

Moving from point b to d involves a decrease in the production of 50 mufflers (from 200 to 150) and an increase in the production of 100 socks (from 400 to 500). Therefore, the opportunity cost of producing an additional 100 socks is 50 mufflers.

The Figure Given Below Shows the Production Possibilities Frontier for Mufflers