Figure 2-2

Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
-Refer to Figure 2-2.What is the opportunity cost of one pound of meat?

Question

Figure 2-2
  
Figure 2-2 above shows the production possibilities frontier for Mendonca, an agrarian nation that produces two goods, meat and vegetables.
-Refer to Figure 2-2.What is the opportunity cost of one pound of meat?

Quizplus · Accepted Answer

The opportunity cost of one pound of meat is the amount of vegetables that must be given up to produce one additional pound of meat. From the graph, we can see that in order to produce one more pound of meat, we would need to give up about 11 pounds of vegetables. Therefore, the opportunity cost of one pound of meat is 11 pounds of vegetables. The best choice(s) is option B, which is the answer for the opportunity cost of one pound of meat.

Figure 2-2 Figure 2-2 Above Shows the Production Possibilities Frontier for Mendonca