-In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is
A) 4 units of Y per unit of X.
B) 2 units of Y per unit of X.
C) 3/2 units of Y per unit of X.
D) 1 unit of Y per unit of X.

Question

-In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of X is
A) 4 units of Y per unit of X. 
B) 2 units of Y per unit of X. 
C) 3/2 units of Y per unit of X. 
D) 1 unit of Y per unit of X.

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of X is the amount of Y that must be given up. If country B is producing 4 units of X and 6 units of Y, the opportunity cost is calculated by the ratio of the change in Y to the change in X. If producing one more unit of X results in a decrease of 1.5 units of Y, then the opportunity cost is 3/2 units of Y per unit of X.

-In the Table Above, Country B Is Producing 4 Units