Figure 2-6
-Refer to Figure 2-6.The opportunity cost of this economy moving from point K to point H is
A)zero.
B)50 blankets.
C)60 pillows.
D)50 blankets and 60 pillows.

Question

Figure 2-6 
-Refer to Figure 2-6.The opportunity cost of this economy moving from point K to point H is
A)zero. 
B)50 blankets. 
C)60 pillows. 
D)50 blankets and 60 pillows.

Quizplus · Accepted Answer

The opportunity cost of moving from point K to point H is the amount of pillows that must be given up to produce the additional blankets. At point K, the economy is producing 50 blankets and 100 pillows. At point H, the economy is producing 100 blankets and 40 pillows. Therefore, the opportunity cost of moving from point K to point H is 60 pillows (100 - 40).

Figure 2-6 -Refer to Figure 2-6.The Opportunity Cost of This Economy Moving