Exhibit 3-4
-Refer to Exhibit 3-4. The opportunity cost of one more unit of a consumption good is greater at Point ____ than at Point ____.

Question

​Exhibit 3-4 
-Refer to Exhibit 3-4. The opportunity cost of one more unit of a consumption good is greater at Point ____ than at Point ____.

Quizplus · Accepted Answer

At Point E, the economy is producing more of the capital good and less of the consumption good compared to Point D. Therefore, to produce one more unit of the consumption good, the economy must give up more units of the capital good at Point E, making the opportunity cost higher. Hence, the opportunity cost of one more unit of a consumption good is greater at Point E than at Point D.

​Exhibit 3-4 -Refer to Exhibit 3-4. the Opportunity Cost of One More

Exhibit 3-4 -Refer to Exhibit 3-4. the Opportunity Cost of One More