Use the following to answer questions :
Figure1-3
-In Figure 1-3, what is the opportunity cost of producing 1 unit of y in terms of x?
A)2/3 units of x.
B)3/2 units of x.
C)1/3 units of x.
D)1 unit of x.
E)None of the above.

Question

Use the following to answer questions :
Figure1-3 
-In Figure 1-3, what is the opportunity cost of producing 1 unit of y in terms of x?
A)2/3 units of x. 
B)3/2 units of x. 
C)1/3 units of x. 
D)1 unit of x. 
E)None of the above.

Quizplus · Accepted Answer

The opportunity cost of producing 1 unit of y is 2/3 units of x, because the production possibilities frontier shows that if 1 unit of y is produced, then 2/3 units of x must be given up.

Use the Following to Answer Questions