The Following Questions Refer to the graph below.
-If the economy were producing combination G initially,the cost of producing additional BD units of capital goods is the value of

Question

The Following Questions Refer to the graph below. 
-If the economy were producing combination G initially,the cost of producing additional BD units of capital goods is the value of

Quizplus · Accepted Answer

The cost of producing additional units of capital goods (moving from G to produce more capital goods) is represented by the opportunity cost, which is the amount of consumer goods that must be forgone. In this context, producing additional BD units of capital goods means giving up EF units of consumer goods, which represents the resources used in their production.

The Following Questions Refer to the Graph Below