Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2

-If the nation depicted in Figure 2.3 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is:

Question

Given below is the production possibilities schedule for capital goods and consumer goods.Table 2.2
 
-If the nation depicted in Figure 2.3 is producing at combination E, the opportunity cost of producing the tenth unit of consumer good is:

Quizplus · Accepted Answer

The opportunity cost of producing the tenth unit of consumer good is the amount of capital goods that must be given up to produce it. At combination E, the nation is producing 9 units of consumer goods and 6 units of capital goods. To produce the tenth unit of consumer good, the nation must give up 1 unit of capital good.

Given Below Is the Production Possibilities Schedule for Capital Goods