Figure 3-13
Peru's Production Possibilities Frontier
-Refer to Figure 3-13.Suppose Peru decides to increase its production of emeralds by 2.What is the opportunity cost of this decision?
A)30 rubies
B)40 rubies
C)60 rubies
D)120 rubies

Question

Figure 3-13
Peru's Production Possibilities Frontier 
-Refer to Figure 3-13.Suppose Peru decides to increase its production of emeralds by 2.What is the opportunity cost of this decision?
A)30 rubies 
B)40 rubies 
C)60 rubies 
D)120 rubies

Quizplus · Accepted Answer

The opportunity cost of increasing emerald production by 2 is 60 rubies, as shown by the movement from point A to point B on the production possibilities frontier.

Figure 3-13 Peru's Production Possibilities Frontier