The following figure shows the production possibilities curve for Sheena, who has to split her time between producing Web sites and computer programs.

-Refer to the figure above.What is the opportunity cost of producing 1 Web site?
A) 0.2 computer programs
B) 5 computer programs
C) 12 computer programs
D) 60 computer programs

Question

The following figure shows the production possibilities curve for Sheena, who has to split her time between producing Web sites and computer programs.
 
-Refer to the figure above.What is the opportunity cost of producing 1 Web site?
A) 0.2 computer programs 
B) 5 computer programs 
C) 12 computer programs 
D) 60 computer programs

Quizplus · Accepted Answer

The opportunity cost of producing 1 Web site is the amount of computer programs that could have been produced instead. From the graph, we can see that Sheena gives up 5 computer programs to produce 1 Web site. The best choice for Sheena depends on her preferences and the market demand, but any point on the production possibilities curve is efficient given her current resources and technology.

The Following Figure Shows the Production Possibilities Curve for Sheena