Use the figure below to answer the following questions. Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A,the opportunity cost of increasing production of Y to 80 units is
A)10 units of Y.
B)80 units of Y.
C)2 units of X.
D)3 units of X.
E)1 unit of X.

Question

Use the figure below to answer the following questions.  Figure 2.1.2
-Refer to the production possibilities frontier in Figure 2.1.2.At point A,the opportunity cost of increasing production of Y to 80 units is
A)10 units of Y. 
B)80 units of Y. 
C)2 units of X. 
D)3 units of X. 
E)1 unit of X.

Quizplus · Accepted Answer

The opportunity cost of increasing production of Y to 80 units is the amount of X that must be given up. If moving from point A to a point where Y is 80 units results in a loss of 3 units of X, then the opportunity cost is 3 units of X.

Use the Figure Below to Answer the Following Questions