Table 2-1
Production Possibilities for Toyland

-Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500
A)50 dolls
B)100 dolls
C)150 dolls
D)200 dolls

Question

Table 2-1
Production Possibilities for Toyland
 
-Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500
A)50 dolls 
B)100 dolls 
C)150 dolls 
D)200 dolls

Quizplus · Accepted Answer

The opportunity cost is the number of dolls that must be given up to produce additional fire trucks. If increasing fire trucks from 450 to 500 results in a loss of 100 dolls, then the opportunity cost is 100 dolls.

Table 2-1 Production Possibilities for Toyland