Production possibilities tables for two countries,North Cantina and South Cantina:
North Cantina
Production possibilities (alternatives)
South Cantina
Production possibilities (alternatives)

-Refer to the above tables.If North Cantina is producing at production alternative B,the opportunity cost of the eleventh unit of consumer goods will be:

Question

Production possibilities tables for two countries,North Cantina and South Cantina:
North Cantina
Production possibilities (alternatives)

South Cantina
Production possibilities (alternatives)

-Refer to the above tables.If North Cantina is producing at production alternative B,the opportunity cost of the eleventh unit of consumer goods will be:

Quizplus · Accepted Answer

The opportunity cost is calculated by the change in capital goods divided by the change in consumer goods. Moving from alternative B to C, consumer goods increase by 8 units (from 10 to 18), and capital goods decrease by 1 unit (from 4 to 3). Therefore, the opportunity cost of one additional unit of consumer goods is 1/8 of a unit of capital goods.

Production Possibilities Tables for Two Countries,North Cantina and South Cantina