Consider the production possibilities frontier displayed in the figure shown.The opportunity cost of one watermelon is:
A) 10 bushels of apples.
B) 20 bushels of apples.
C) 30 bushels of apples.
D) 40 bushels of apples.

Question

Consider the production possibilities frontier displayed in the figure shown.The opportunity cost of one watermelon is:
A) 10 bushels of apples. 
B) 20 bushels of apples. 
C) 30 bushels of apples. 
D) 40 bushels of apples.

Quizplus · Accepted Answer

The opportunity cost of producing one additional watermelon is the amount of apples that must be given up. Moving from point B to C means producing one more watermelon, which requires giving up 20 bushels of apples. Therefore, the opportunity cost of one watermelon is 20 bushels of apples. 
The best choice(s) depend on individual preferences and needs. Without additional information, we cannot determine the best choice(s).

Consider the Production Possibilities Frontier Displayed in the Figure Shown