Use the following to answer question:
-(Table: Production of Good Z and Good X in Urbanville)Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing at combination F,what is the opportunity cost of a move to combination E?
A)5 of Z
B)20 of Z
C)25 of X
D)0 of X

Question

Use the following to answer question: 
-(Table: Production of Good Z and Good X in Urbanville)Use Table: Production of Good Z and Good X in Urbanville.This table shows the production possibility frontier for Urbanville.Suppose Urbanville is producing at combination F,what is the opportunity cost of a move to combination E?
A)5 of Z 
B)20 of Z 
C)25 of X 
D)0 of X

Quizplus · Accepted Answer

Moving from combination F to E on a production possibility frontier typically involves increasing the production of one good while decreasing the production of another. The opportunity cost is what must be given up to gain something else. In this case, moving from F to E would involve giving up some amount of Good Z to produce more of Good X. Since the specific numbers are not provided in the question, the correct answer is inferred based on the typical understanding of opportunity costs in economics.

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