Table 2-5

-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Question

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Quizplus · Accepted Answer

The opportunity cost is the amount of coffee that must be given up to increase cookie production from 200 dozen to 400 dozen. If the production possibilities table shows that this increase requires sacrificing 200 pounds of coffee, then that is the opportunity cost.

Table 2-5 -Refer to Table 2-5.Table 2-5 Shows One Set of Production