Use the following to answer questions :
Figure: Strawberries and Submarines II
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. Assume that the economy is operating at point A. The opportunity cost of moving to point C is equal to _____ million tons of strawberries:
A)800
B)200
C)2
D)50

Question

Use the following to answer questions :
Figure: Strawberries and Submarines II 
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. Assume that the economy is operating at point A. The opportunity cost of moving to point C is equal to _____ million tons of strawberries:
A)800 
B)200 
C)2 
D)50

Quizplus · Accepted Answer

Moving from point A to point C means sacrificing 400 million submarines in order to gain 2 million tons of strawberries. Therefore, the opportunity cost of moving to point C is equal to 200 million tons of strawberries (400/2). Moving to point B means sacrificing 200 million submarines in order to gain 1 million tons of strawberries, which means the opportunity cost is 200 million tons of strawberries (200/1). Since the opportunity cost is the same for both options, the best choice depends on individual preferences.

Use the Following to Answer Questions