-In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A) 25 ukuleles.
B) 50 guitars.
C) 100 guitars.
D) 25 guitars.

Question

-In the above figure, the opportunity cost of moving from producing 75 guitars and 25 ukuleles to producing 50 guitars and 50 ukuleles is
A) 25 ukuleles. 
B) 50 guitars. 
C) 100 guitars. 
D) 25 guitars.

Quizplus · Accepted Answer

The opportunity cost of moving from producing 75 guitars to 50 guitars (a reduction of 25 guitars) to increase the production of ukuleles from 25 to 50 is 25 guitars. This is because opportunity cost is what is foregone to gain something else; in this case, 25 guitars are foregone to produce an additional 25 ukuleles.

-In the Above Figure, the Opportunity Cost of Moving from Producing