Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier
-Refer to Figure 3-15.The opportunity cost of 1 novel for Perry is
A)1/6 poem.
B)2 poems.
C)6 poems.
D)12 poems.

Question

Figure 3-15
Perry's Production Possibilities Frontier
Jordan's Production Possibilities Frontier  
-Refer to Figure 3-15.The opportunity cost of 1 novel for Perry is
A)1/6 poem. 
B)2 poems. 
C)6 poems. 
D)12 poems.

Quizplus · Accepted Answer

The opportunity cost of 1 novel for Perry is 6 poems because Perry can produce either 1 novel or 6 poems. Therefore, for every novel Perry chooses to produce, he gives up the opportunity to produce 6 poems.

Figure 3-15 Perry's Production Possibilities Frontier