Exhibit 11.6

-Refer to Exhibit 11.6,which shows the demand and supply curves of a resource.The opportunity costs of the resource in equilibrium equal _____

Question

Exhibit 11.6
 
-Refer to Exhibit 11.6,which shows the demand and supply curves of a resource.The opportunity costs of the resource in equilibrium equal _____

Quizplus · Accepted Answer

The opportunity cost of a resource is the value of the next best alternative that is forgone. In equilibrium, the price of the resource is equal to the marginal cost of producing it, which is also equal to the marginal benefit of using it. Therefore, the opportunity cost of the resource in equilibrium is equal to the price of the resource, which is $10.

Exhibit 11.6 -Refer to Exhibit 11.6,which Shows the Demand and Supply Curves