-The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) Nothing, it is a free lunch
B) 12 tons of rice
C) 15 thousand bottles of wine
D) 9 thousand bottles of wine
E) 3 tons of rice

Question

-The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) Nothing, it is a free lunch 
B) 12 tons of rice 
C) 15 thousand bottles of wine 
D) 9 thousand bottles of wine 
E) 3 tons of rice

Quizplus · Accepted Answer

The opportunity cost is the amount of rice that must be given up to produce more wine. If moving to 9 thousand bottles of wine results in a decrease of 3 tons of rice, then the opportunity cost is 3 tons of rice.

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