Figure 2-3

-Figure 2-3 shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes.The opportunity cost of moving from point B to C is

Question

Figure 2-3
 
-Figure 2-3 shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes.The opportunity cost of moving from point B to C is

Quizplus · Accepted Answer

The opportunity cost of moving from point B to C is the number of compact disks that must be given up in order to produce an additional 100 cassettes. This can be calculated as the change in the number of compact disks divided by the change in the number of cassettes, which is:

(280 - 220) / (600 - 500) = 60

Therefore, the opportunity cost of moving from point B to C is 60 compact disks. The best choice(s) would depend on the specific production goals of the music processing plant, but point C may be preferred if there is higher demand for cassettes than for compact disks.

Figure 2-3 -Figure 2-3 Shows the Production Possibilities Frontier for a Music