Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.

-Refer to Table 2.4.1. For Romulus, the opportunity cost of producing an additional unit of X is
A)4 units of Y.
B)2 units of Y.
C)2/3 units of Y.
D)1 unit of Y.
E)3/2 units of Y.

Question

Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.
 
-Refer to Table 2.4.1. For Romulus, the opportunity cost of producing an additional unit of X is
A)4 units of Y. 
B)2 units of Y. 
C)2/3 units of Y. 
D)1 unit of Y. 
E)3/2 units of Y.

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of X is calculated by the ratio of the loss in Y to the gain in X. If Romulus gives up 3 units of Y to produce 2 additional units of X, the opportunity cost is 3/2 units of Y per unit of X.

Use the Figure Below to Answer the Following Questions