Figure 2-10 Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?

Question

Figure 2-10  Refer to Figure 2-10. What is the opportunity cost of the movement from point A to point C?

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative that must be given up in order to undertake the chosen action. Moving from point A to point C means giving up 100 baseballs, which is the opportunity cost. Option A and C are incorrect because they refer to the values at specific points and not the opportunity cost of a specific movement. Option D is incorrect because it refers to the opportunity cost of moving from point B to point C.