Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:
A)800 warheads.
B)400 warheads.
C)200 warheads.
D)100 warheads.

Question

Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be: 
A)800 warheads. 
B)400 warheads. 
C)200 warheads. 
D)100 warheads.

Quizplus · Accepted Answer

At point C, the economy is producing 400 warheads and 600 units of medical care. The opportunity cost of producing an additional 100 units of medical care would be the amount of warheads that would need to be given up. From point C to point B, the economy would need to give up 400 warheads to produce an additional 100 units of medical care. Therefore, the opportunity cost of providing 100 additional units of medical care is 400 warheads.

Refer to the Figure Below