Use the following to answer questions :
Figure 1-5
-Consult Figure 1-5.What is country B's cost of producing 1 unit of y in terms of x?
A)1 unit of x.
B)10 units of x.
C)5 units of x.
D)1/2 units of x.
E)Cannot be determined from the given information.

Question

Use the following to answer questions :
Figure 1-5 
-Consult Figure 1-5.What is country B's cost of producing 1 unit of y in terms of x?
A)1 unit of x. 
B)10 units of x. 
C)5 units of x. 
D)1/2 units of x. 
E)Cannot be determined from the given information.

Quizplus · Accepted Answer

Country B's cost of producing 1 unit of y in terms of x is determined by the opportunity cost, which is the amount of x that must be given up to produce an additional unit of y. Based on the information provided, if the figure shows a direct trade-off where producing 1 unit of y requires giving up 1 unit of x, then the correct answer is 1 unit of x.

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