The figure below shows Arcticland's annual production possibilities boundary for the production of fish and ice. FIGURE 32-4
-Refer to Figure 32-4.Beginning at point A on Arcticland's production possibilities boundary,the opportunity cost of producing 10 more tonnes of fish is ________ and the opportunity cost of producing 10 more tonnes of ice is ________.

Question

The figure below shows Arcticland's annual production possibilities boundary for the production of fish and ice.  FIGURE 32-4
-Refer to Figure 32-4.Beginning at point A on Arcticland's production possibilities boundary,the opportunity cost of producing 10 more tonnes of fish is ________ and the opportunity cost of producing 10 more tonnes of ice is ________.

Quizplus · Accepted Answer

The opportunity cost of producing more of one good is the amount of the other good that must be given up. If producing 10 more tonnes of fish costs 20 tonnes of ice, then producing 10 more tonnes of ice costs 5 tonnes of fish.

The Figure Below Shows Arcticland's Annual Production Possibilities Boundary for the Production