Figure 3-19
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier
-Refer to Figure 3-19.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by
A)12 pounds.
B)18 pounds.
C)36 pounds.
D)48 pounds.

Question

Figure 3-19
Chile's Production Possibilities Frontier
Colombia's Production Possibilities Frontier  
-Refer to Figure 3-19.Colombia would incur an opportunity cost of 24 pounds of coffee if it increased its production of soybeans by
A)12 pounds. 
B)18 pounds. 
C)36 pounds. 
D)48 pounds.

Quizplus · Accepted Answer

The opportunity cost of producing 12 pounds of soybeans is 24 pounds of coffee, indicating a 2:1 trade-off ratio between coffee and soybeans.

Figure 3-19 Chile's Production Possibilities Frontier