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 Y is
A)2/3 units of X.
B)1/2 unit of X.
C)2 units of X.
D)3 units of X.
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 Y is
A)2/3 units of X. 
B)1/2 unit of X. 
C)2 units of X. 
D)3 units of X. 
E)3/2 units of Y.

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of Y is the amount of X that must be given up. If Romulus gives up 2/3 units of X to produce one more unit of Y, then the opportunity cost is 2/3 units of X.

Use the Figure Below to Answer the Following Questions