$$\begin{array} { | l | l | l | }
\hline \text { Point } & \begin{array} { l }
\text { Production } \
\text { of } X
\end{array} & \begin{array} { l }
\text { Production } \
\text { of } Y
\end{array} \
\hline a & 0 & 40 \
\hline b & 4 & 36 \
\hline c & 8 & 28 \
\hline & 12 & 16 \
\hline e & 16 & 0 \
\hline
\end{array}$$
-Refer to the table above, which gives five points on a nation?s PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of
A) 2/5 unit of X per unit of Y.
B) 1/5 unit of X per unit of Y.
C) 1/2 unit of X per unit of Y.
D) 3/5 unit of X per unit of Y.

Question

$$\begin{array} { | l | l | l | } 
\hline \text { Point } & \begin{array} { l } 
\text { Production } \
\text { of } X
\end{array} & \begin{array} { l } 
\text { Production } \
\text { of } Y
\end{array} \
\hline a & 0 & 40 \
\hline b & 4 & 36 \
\hline c & 8 & 28 \
\hline & 12 & 16 \
\hline e & 16 & 0 \
\hline
\end{array}$$
-Refer to the table above, which gives five points on a nation?s PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of
A) 2/5 unit of X per unit of Y.
B) 1/5 unit of X per unit of Y.
C) 1/2 unit of X per unit of Y.
D) 3/5 unit of X per unit of Y.

Quizplus · Accepted Answer

The opportunity cost of increasing the production of Y from 16 to 36 units is the amount of X that must be given up to produce the additional Y. From the table, we can see that when the production of Y increases from 16 to 36 units, the production of X decreases from 16 to 4 units. Therefore, the opportunity cost of increasing the production of Y from 16 to 36 units is 16 - 4 = 12 units of X. Since the production of Y increases by 20 units, the opportunity cost per unit of Y is 12/20 = 3/5 unit of X.

-Refer to the Table Above, Which Gives Five Points on \hline

-Refer to the Table Above, Which Gives Five Points on
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