Below is a production possibilities curve for a large tract of prairie farm land.

-Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of wheat?
A)0.5 units of rye.
B)2 units of rye.
C)5 units of rye.
D)$2.

Question

Below is a production possibilities curve for a large tract of prairie farm land.
 
-Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of wheat?
A)0.5 units of rye. 
B)2 units of rye. 
C)5 units of rye. 
D)$2.

Quizplus · Accepted Answer

The opportunity cost of 1 unit of wheat is the amount of rye that must be given up to produce it. If the graph shows that producing 1 unit of wheat requires sacrificing 0.5 units of rye, then the opportunity cost is 0.5 units of rye.

Below Is a Production Possibilities Curve for a Large Tract