Table 2.3
$$\begin{array}{l}
\text { Table } 2.3\
\begin{array} { | l | l | l | l | l | l | }
\hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \
\hline \begin{array} { l }
\text { Consumer } \
\text { goods }
\end{array} & 40 & 35 & 20 & 7 & 0 \
\hline
\end{array}
\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 3 units of capital goods at point D?

Question

Table 2.3
 $$\begin{array}{l}
\text { Table } 2.3\
\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \
\hline \begin{array} { l } 
\text { Consumer } \
\text { goods }
\end{array} & 40 & 35 & 20 & 7 & 0 \
\hline
\end{array}
\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 3 units of capital goods at point D?

Quizplus · Accepted Answer

The opportunity cost of producing 3 units of capital goods (moving from C to D) is the reduction in consumer goods from 20 to 7, which is 13 units of consumer goods.

Table 23 -Refer to Table 2