Use the following to answer question:
-(Figure: Omar's Production Possibilities)Use Figure: Omar's Production Possibilities.The opportunity cost for Tom to move from point A on the curve to point B is:
A)10 coconuts.
B)10 fish.
C)5 coconuts.
D)5 fish.

Question

Use the following to answer question: 
-(Figure: Omar's Production Possibilities)Use Figure: Omar's Production Possibilities.The opportunity cost for Tom to move from point A on the curve to point B is:
A)10 coconuts. 
B)10 fish. 
C)5 coconuts. 
D)5 fish.

Quizplus · Accepted Answer

Moving from point A to B means producing 5 more fish but giving up 10 coconuts. Therefore, the opportunity cost of producing 1 fish is 2 coconuts (10 coconuts/5 fish = 2 coconuts per fish).

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