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

Question

Quizplus · Accepted Answer

The opportunity cost of moving from producing 50 guitars to 25 guitars (a reduction of 25 guitars) to increase the production of ukuleles from 50 to 75 is the quantity of guitars given up, which is 25 guitars.

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