Exhibit 2-6
-In Exhibit 2-5, the opportunity cost of moving from point b to d is

Question

Exhibit 2-6  
-In Exhibit 2-5, the opportunity cost of moving from point b to d is

Quizplus · Accepted Answer

The opportunity cost of moving from point b to d is the difference in the number of socks given up to produce more mufflers. From b to d, the number of mufflers produced increases by 30, but the number of socks produced decreases by 100. Therefore, the opportunity cost of producing 30 mufflers is 100 socks (option C). Since point b already produces the maximum number of socks, the best choice would be to stay at point b and produce 250 socks.