-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point A.What is the opportunity cost of increasing the production of rice to 12 tonnes?
A)12 tonnes of rice
B)9 thousand bottles of wine
C)6 thousand bottles of wine
D)15 thousand bottles of wine
E)Nothing,it is a free lunch.

Question

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point A.What is the opportunity cost of increasing the production of rice to 12 tonnes?
A)12 tonnes of rice 
B)9 thousand bottles of wine 
C)6 thousand bottles of wine 
D)15 thousand bottles of wine 
E)Nothing,it is a free lunch.

Quizplus · Accepted Answer

The opportunity cost of increasing rice production to 12 tonnes is the amount of wine production that must be forgone. If moving from point A to the point where rice production is 12 tonnes results in a decrease of 6 thousand bottles of wine, then that is the opportunity cost.

-The Above Figure Shows the Production Possibility Frontier for a Country.Suppose