Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?
A)420 tonnes of cotton
B)100 tonnes of cotton
C)there is no opportunity cost
D)60 tonnes of cotton
E)920 tonnes of cotton

Question

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas.  FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?
A)420 tonnes of cotton 
B)100 tonnes of cotton 
C)there is no opportunity cost 
D)60 tonnes of cotton 
E)920 tonnes of cotton

Quizplus · Accepted Answer

The Answer of Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas.  FIGURE 1-7
-Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?
A)420 tonnes of cotton 
B)100 tonnes of cotton 
C)there is no opportunity cost 
D)60 tonnes of cotton 
E)920 tonnes of cotton

Figure 1-7 Shows the Production Possibilities Boundary for an Economy