France must give up the production of 100 ties to produce 50 additional sweaters. The opportunity cost of producing four ties is _____ sweater(s).

Question

Quizplus · Accepted Answer

France gives up producing 100 ties to produce 50 sweaters. Therefore, the opportunity cost of producing one tie is 1/2 sweater. The opportunity cost of producing four ties is (4 ties) x (1/2 sweater/tie) = 2 sweaters.

France Must Give Up the Production of 100 Ties to Produce