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

Quizplus · Accepted Answer

The opportunity cost of increasing rice production to 15 tonnes is the amount of wine that must be given up. If moving from point D to the point where rice is 15 tonnes results in a loss of 9 thousand bottles of wine, then that is the opportunity cost.

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