Exhibit 2-15 Production possibilities curve In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

Question

Exhibit 2-15  Production possibilities curve  In Exhibit 2-15, if the economy moves from point L to point M, the opportunity cost of producing 10 more capital goods is:

Quizplus · Accepted Answer

Moving from point L to point M involves shifting resources from consumer goods to capital goods, meaning the opportunity cost is the amount of consumer goods given up. From the graph, we can see that moving from point L to point M involves a shift of 10 units of capital goods, which means the opportunity cost is 15 units of consumer goods (from 80 to 65). Therefore, the answer is C.

Exhibit 2-15 Production Possibilities Curve in Exhibit 2-15, If the Economy