-Suppose that, for given resources and production technology, the above shows the production relationship between soda and pizza. For the sake of simplicity, assume the relationship is linear. What is the opportunity cost of producing an additional unit of pizza?
A) 1 pizza
B) 4 sodas
C) 3 sodas
D) Cannot be calculated with the information provided (the prices for both products are not given).

Question

-Suppose that, for given resources and production technology, the above shows the production relationship between soda and pizza. For the sake of simplicity, assume the relationship is linear. What is the opportunity cost of producing an additional unit of pizza?
A) 1 pizza 
B) 4 sodas 
C) 3 sodas 
D) Cannot be calculated with the information provided (the prices for both products are not given).

Quizplus · Accepted Answer

In a linear production relationship, the opportunity cost is constant. If producing one more pizza requires sacrificing 4 sodas, then the opportunity cost of producing an additional unit of pizza is 4 sodas.

-Suppose That, for Given Resources and Production Technology, the Above