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

Question

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of a good is found by dividing the loss in the quantity of the other good by the gain in the quantity of the good being produced. Without the specific details from Figure 18.1, the general approach to find the opportunity cost of producing umbrellas in terms of sunglasses in Duckland involves looking at the trade-off between producing umbrellas and sunglasses. If producing one more umbrella means giving up 1 1/5 sunglasses, then the opportunity cost of one umbrella is 1 1/5 sunglasses.

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