-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) 12 tons of rice
B) 15 thousand bottles of wine
C) 9 thousand bottles of wine
D) 3 tons of rice
E) Nothing, it is a free lunch.

Question

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point E.What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) 12 tons of rice 
B) 15 thousand bottles of wine 
C) 9 thousand bottles of wine 
D) 3 tons of rice 
E) Nothing, it is a free lunch.

Quizplus · Accepted Answer

The opportunity cost is the amount of rice that must be given up to produce more wine. If moving from point E to produce 9 thousand bottles of wine results in a loss of 3 tons of rice, then the opportunity cost is 3 tons of rice.

-The Above Figure Shows the Production Possibility Frontier for a Country.Suppose