-Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships.If the country is currently operating at point C and decided to move to point B,

Question

Quizplus · Accepted Answer

The opportunity cost of moving from point C to point B is the number of cruise ships that must be given up to produce one more rocket. At point C, the country is producing 10 rockets and 10 cruise ships. At point B, the country is producing 14 rockets and 6 cruise ships. Therefore, the opportunity cost of producing one more rocket is 4 cruise ships.

-Figure 2-5 Shows Five Different Points Along the Production Possibilities