The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.

-Refer to the graph above to answer this question.If Mendork's current production is at point A,what is the (approximate)cost of producing one more quirk?
A)100 quarks.
B)50 quarks.
C)25 quarks.
D)200 quarks.
E)One more quark.

Question

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.
 
-Refer to the graph above to answer this question.If Mendork's current production is at point A,what is the (approximate)cost of producing one more quirk?
A)100 quarks. 
B)50 quarks. 
C)25 quarks. 
D)200 quarks. 
E)One more quark.

Quizplus · Accepted Answer

The opportunity cost of producing one more quirk is the amount of quarks that Mendork has to give up. As we move from point A to point B along the production possibility curve, we can see that Mendork gives up 25 quarks to produce one more quirk. Therefore, the approximate cost of producing one more quirk is 25 quarks.

The Graph Below Is Mendork's Production Possibility Curve for the Only