-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 tons?
A) 15 thousand bottles of wine
B) 6 thousand bottles of wine
C) 9 thousand bottles of wine
D) 12 tons of rice
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 tons?
A) 15 thousand bottles of wine 
B) 6 thousand bottles of wine 
C) 9 thousand bottles of wine 
D) 12 tons of rice 
E) Nothing, it is a free lunch.

Quizplus · Accepted Answer

To calculate the opportunity cost of moving from point A to a point where 12 tons of rice are produced, we look at the decrease in wine production necessary to free up resources for the additional rice production. The correct answer reflects the quantity of wine forgone to produce the additional rice, based on the slope of the production possibility frontier between the relevant points.

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