Figure 2-2 Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids.
-Refer to Figure 2-2.What is the opportunity cost of one dozen roses?

Question

Figure 2-2  Figure 2-2 above shows the production possibilities frontier for Vidalia,a nation that produces two goods,roses and orchids.
-Refer to Figure 2-2.What is the opportunity cost of one dozen roses?

Quizplus · Accepted Answer

The opportunity cost of one dozen roses is the amount of orchids that must be given up to produce one more dozen roses. If the opportunity cost is 0.4 dozen orchids, it means that for every dozen roses produced, 0.4 dozen orchids are not produced.

Figure 2-2 Figure 2-2 Above Shows the Production Possibilities