$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Cheese } \
\text { (tons) }
\end{array} & \begin{array} { c }
\text { DVDs } \
\text { (thousands) }
\end{array} \
\hline 0 & 60 \
\hline 2 & 56 \
\hline 4 & 48 \
\hline 6 & 36 \
\hline 8 & 20 \
\hline 10 & 0 \
\hline
\end{array}$$
-The table above lists six points on the production possibilities frontier for cheese and DVDs.What is the opportunity cost of producing the 7th ton of cheese?
A) 16 DVDs per ton of cheese
B) 8 DVDs per ton of cheese
C) 20 DVDs per ton of cheese
D) 28 DVDs per ton of cheese

Question

$$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Cheese } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { DVDs } \
\text { (thousands) }
\end{array} \
\hline 0 & 60 \
\hline 2 & 56 \
\hline 4 & 48 \
\hline 6 & 36 \
\hline 8 & 20 \
\hline 10 & 0 \
\hline
\end{array}$$
-The table above lists six points on the production possibilities frontier for cheese and DVDs.What is the opportunity cost of producing the 7th ton of cheese?
A) 16 DVDs per ton of cheese
B) 8 DVDs per ton of cheese
C) 20 DVDs per ton of cheese
D) 28 DVDs per ton of cheese

Quizplus · Accepted Answer

To find the opportunity cost of the 7th ton of cheese, we need to consider the trade-off between producing more cheese and producing DVDs. From the table, we can see that producing 6 tons of cheese allows for the production of 36 thousand DVDs, while producing 8 tons of cheese only allows for the production of 20 thousand DVDs. Therefore, producing the 7th ton of cheese would mean giving up 16 thousand DVDs (the difference between the number of DVDs produced when producing 6 and 8 tons of cheese). The opportunity cost of the 7th ton of cheese is 16 DVDs per ton of cheese. Therefore, the answer is B.

As for the best choice, it is not given what decision needs to be made, so there is no clear answer.

-The Table Above Lists Six Points on the Production Possibilities