Refer to the following figure for the questions that follow.

-The opportunity cost of increasing production of apple pies from 14 to 16 pies is:
A) 2 blueberry pies.
B) 14 apple pies.
C) 7 blueberry pies.
D) 4 blueberry pies.
E) 16 blueberry pies.

Question

Refer to the following figure for the questions that follow.
 
-The opportunity cost of increasing production of apple pies from 14 to 16 pies is:
A) 2 blueberry pies. 
B) 14 apple pies. 
C) 7 blueberry pies. 
D) 4 blueberry pies. 
E) 16 blueberry pies.

Quizplus · Accepted Answer

The opportunity cost of increasing production of apple pies from 14 to 16 pies is 7 blueberry pies (the slope of the production possibility frontier). Therefore, the best choice would be to produce at point B, where there is a combination of 12 apple pies and 6 blueberry pies. This choice lies within the production possibility frontier and provides the highest total output of apple and blueberry pies.

Refer to the Following Figure for the Questions That Follow