-In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is
A) 3 gallons.
B) half a gallon.
C) 4 gallons.
D) 1 gallon.

Question

-In the figure above, if the quantity of yogurt produced increases from 2 gallons an hour to 3 gallons an hour, the opportunity cost of a gallon of yogurt in terms of ice cream is
A) 3 gallons. 
B) half a gallon. 
C) 4 gallons. 
D) 1 gallon.

Quizplus · Accepted Answer

The opportunity cost of a gallon of yogurt is the amount of ice cream that must be given up to produce that gallon of yogurt. In this case, the opportunity cost of a gallon of yogurt is 1 gallon of ice cream, because for every gallon of yogurt that is produced, 1 gallon of ice cream must be given up.

-In the Figure Above, If the Quantity of Yogurt Produced