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 rye?
A)0.5 units of wheat.
B)2 units of wheat.
C)5 units of wheat.
D)$400.

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 rye?
A)0.5 units of wheat. 
B)2 units of wheat. 
C)5 units of wheat. 
D)$400.

Quizplus · Accepted Answer

The opportunity cost of producing 1 unit of rye is the amount of wheat that could have been produced with the resources used to produce that 1 unit of rye. If the graph (which is not visible in this format) shows that producing 1 more unit of rye requires giving up 2 units of wheat, then the opportunity cost of 1 unit of rye is 2 units of wheat.

Below Is a Production Possibilities Curve for a Large Tract