Table 2-3
Production Possibilities for Footville
-Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?

Question

Table 2-3
Production Possibilities for Footville 
-Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?

Quizplus · Accepted Answer

To increase the production of shoes from 400 to 600, Footville must give up the production of 300 socks (from 800 to 500). Therefore, the opportunity cost of increasing shoe production by 200 is 300 socks. The best choice is to consider whether the benefits of producing an additional 200 shoes outweigh the opportunity cost of producing 300 fewer socks.

Table 2-3 Production Possibilities for Footville