Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier
-Refer to Figure 3-14.Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by
A)27.
B)48.
C)108.
D)144.

Question

Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier  
-Refer to Figure 3-14.Arturo would incur an opportunity cost of 36 burritos if he increased his production of tacos by
A)27. 
B)48. 
C)108. 
D)144.

Quizplus · Accepted Answer

As we move along Arturo's PPF from producing 36 tacos to 72 tacos, the opportunity cost of producing 1 additional taco increases from 2 burritos to 3 burritos. Therefore, to produce 48 additional tacos (from 36 to 84 tacos), Arturo incurs an opportunity cost of 2 burritos per taco, which equals a total opportunity cost of 48 tacos x 2 burritos = 96 burritos.

Figure 3-14 Arturo's Production Possibilities Frontier