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 B on the curve to point A 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 B on the curve to point A is:
A)10 coconuts. 
B)10 fish. 
C)5 coconuts. 
D)5 fish.

Quizplus · Accepted Answer

The opportunity cost of moving from point B to point A involves giving up the production of some goods in order to produce more of another. In this case, moving from B to A on a typical production possibilities curve means producing fewer coconuts in order to catch more fish. Since the question specifies the movement from B to A and asks for the opportunity cost in terms of what is given up, and the correct answer is the amount of fish given up, which is 10 fish.

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