Narrbegin Exhibit 18.1 Production possibilities curves
-In Exhibit 18.1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:

Question

Narrbegin Exhibit 18.1 Production possibilities curves  
-In Exhibit 18.1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Pada the cost of producing one more unit of corn is equal to:

Quizplus · Accepted Answer

The cost of producing one more unit of corn in terms of what must be given up is known as the opportunity cost. In the context of a production possibilities curve, this is determined by the slope of the curve. The correct answer, "3 units of wheat," implies that to produce one additional unit of corn, Pada must give up 3 units of wheat, indicating the opportunity cost of producing corn in terms of wheat.

Narrbegin Exhibit 18.1 Production Possibilities Curves