If the United States, at the point where it is currently producing, must give up the production of 500 bicycles (B) to produce 20 additional tractors (T) with the same resources, the opportunity cost of producing 5 tractors is _______ bicycles.

Question

Quizplus · Accepted Answer

The opportunity cost of producing 20 tractors is 500 bicycles, so for 5 tractors, it would be 500/20 * 5 = 125 bicycles.

If the United States, at the Point Where It Is