Moving between two points on a PPF,a country gains 8 desktop computers and forgoes 4 laptop computers.The opportunity cost of 1 desktop computer is
A)1/2 of a laptop.
B)2 laptops.
C)4 laptops.
D)1 desktop.
E)8 desktops.

Question

Quizplus · Accepted Answer

The opportunity cost of 1 desktop computer is the number of laptops that must be given up to produce one additional desktop computer. In this case, the country gains 8 desktop computers and forgoes 4 laptop computers. Therefore, the opportunity cost of 1 desktop computer is:

Opportunity cost of 1 desktop = 4 laptops/8 desktops = 1/2 of a laptop

So the best choice would be A) 1/2 of a laptop.

Moving Between Two Points on a PPF,a Country Gains 8