Figure 18.1
-Refer to Figure 18.1.The opportunity cost of producing sunglasses in Duckland is

Question

Quizplus · Accepted Answer

The opportunity cost of producing one pair of sunglasses in Duckland is 5/6 of an umbrella, as shown by the slope of the production possibility frontier. This means that for every pair of sunglasses produced, Duckland must give up the production of 5/6 of an umbrella. Therefore, the best choice is to produce sunglasses as long as the opportunity cost is less than one unit of umbrella.

Figure 18.1 -Refer to Figure 18.1.The Opportunity Cost of Producing Sunglasses in Sunglasses