If a society is currently producing 9 bicycles and 4 computers,the decision to increase computer output to 6 costs:
A)4 bicycles
B)2 bicycles
C)5 bicycles
D)zero because unemployed resources are available
E)irrelevant because this decision is inconsistent with consumer preferences

Question

Quizplus · Accepted Answer

If the society decides to increase computer output from 4 to 6, it means they will have to shift resources from producing bicycles to computers. In this case, the opportunity cost of producing 2 more computers is giving up the production of 4 bicycles (9-5=4). Therefore, the decision to increase computer output to 6 costs 4 bicycles.

If a Society Is Currently Producing 9 Bicycles and 4