Exhibit 2.4

-Refer to Exhibit 2.4, which shows the production possibilities frontier for mufflers and socks. The opportunity cost of moving from point b to d is _____

Question

Exhibit 2.4
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-Refer to Exhibit 2.4, which shows the production possibilities frontier for mufflers and socks. The opportunity cost of moving from point b to d is _____

Quizplus · Accepted Answer

Moving from point b to d involves decreasing muffler production by 50 units (from 150 to 100) and increasing sock production by 100 units (from 0 to 100). Therefore, the opportunity cost of this move is 100 socks, which is the amount of socks given up in order to produce an additional 50 mufflers.

Exhibit 2.4 ​

Exhibit 2.4