Table 2-2
Production Possibilities for Batterland

-Refer to Table 2-2.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Question

Table 2-2
Production Possibilities for Batterland
 
-Refer to Table 2-2.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Quizplus · Accepted Answer

The opportunity cost is the number of waffles that Batterland must give up to produce 300 pancakes. According to Table 2-2, Batterland can produce 225 waffles or 150 pancakes. To produce 300 pancakes, Batterland must give up the production of 150 waffles.

Table 2-2 Production Possibilities for Batterland