-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point C to point B,what is the opportunity cost of a DVD?
A) 0.5 cell phones
B) 2 cell phones
C) 0.5 million cell phones
D) 2 million cell phones
E) zero

Question

-The figure above shows a production possibilities frontier.In the figure,when the economy moves from point C to point B,what is the opportunity cost of a DVD?
A) 0.5 cell phones 
B) 2 cell phones 
C) 0.5 million cell phones 
D) 2 million cell phones 
E) zero

Quizplus · Accepted Answer

The opportunity cost of a DVD is 0.5 cell phones because when the economy moves from point C to point B, it gives up the production of 0.5 cell phones in order to produce one additional DVD.

-The Figure Above Shows a Production Possibilities Frontier