Figure 2-8 Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2-8. What is the opportunity cost of one dozen orchids?

Question

Figure 2-8  Figure 2-8 above shows the production possibilities frontier for Vidalia, a nation that produces two goods, roses and orchids.
-Refer to Figure 2-8. What is the opportunity cost of one dozen orchids?

Quizplus · Accepted Answer

The opportunity cost of one dozen orchids is the amount of roses that could have been produced instead. According to the given options, 2.5 dozen roses is the correct opportunity cost for one dozen orchids.

Figure 2-8 Figure 2-8 Above Shows the Production Possibilities