In the above figure, the opportunity cost of moving from point D to point E is
A) 75 guitars.
B) 55 guitars.
C) 100 ukuleles.
D) 100 guitars.

Question

Quizplus · Accepted Answer

Moving from point D to point E involves giving up the production of 55 guitars to produce 100 ukuleles, which is the opportunity cost. Therefore, choosing point D over E means sacrificing the production of 55 guitars, making point E the better option as it produces more ukuleles while affecting the production of guitars by a smaller amount.

In the Above Figure, the Opportunity Cost of Moving from Point