If an economy can produce a maximum of 100 units of good X and the opportunity cost of 1X is always 5Y,then what is the maximum number of units of good Y the economy can produce?
A) 250
B) 100
C) 20
D) 500
E) none of the above

Question

Quizplus · Accepted Answer

If the opportunity cost of 1 unit of X is 5 units of Y, then producing 100 units of X would mean sacrificing 500 units of Y. Therefore, the maximum number of units of good Y the economy can produce is 500.

If an Economy Can Produce a Maximum of 100 Units