Figure 2-4
-Between c and b in Figure 2-4,the opportunity cost of another tonne of corn is (on average)

Question

Figure 2-4 
-Between c and b in Figure 2-4,the opportunity cost of another tonne of corn is (on average)

Quizplus · Accepted Answer

The opportunity cost of producing an additional unit of a good is the amount of the other good that must be given up. In this case, moving from point c to point b to produce another tonne of corn involves giving up cloth. The slope between these points (change in cloth/change in corn) represents this opportunity cost, which is calculated as the difference in cloth divided by the difference in corn (100/125 metres of cloth).

Figure 2-4 -Between C and B in Figure 2-4,the Opportunity Cost of Opportunity