If an economy produces only movies and computers, then the opportunity cost of producing more movies is
A)the value of forgone computer production.
B)the value of more computer production.
C)the value of movie production minus the value of computer production
D)the total value of movie and computer production.
E)zero because computers and movies are unrelated.

Question

Quizplus · Accepted Answer

The opportunity cost of producing more movies is the value of forgone computer production. This is because if the economy chooses to produce more movies, it must give up some of its resources that could have been used to produce computers instead. The value of these forgone computers is the opportunity cost of producing more movies.

If an Economy Produces Only Movies and Computers, Then the Opportunity