Asked by Holly Bienias on Apr 27, 2024
Verified
(Table: Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I.The opportunity cost of producing the third unit of consumer goods is _____ units of capital goods.
A) 2
B) 4
C) 6
D) 8
Consumer Goods
Products that are bought for consumption by the average consumer.
Capital Goods
Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.
Opportunity Cost
The act of losing potential profits from other pathways when one route is taken.
- Acquire knowledge about the idea of opportunity cost and its relevance to choices in production.
Verified Answer
JH
Jerri HirstApr 29, 2024
Final Answer :
C
Explanation :
The opportunity cost of producing the third unit of consumer goods is the amount of capital goods that must be given up to produce it. From the second to the third unit of consumer goods, the production of capital goods decreases from 18 to 12, a difference of 6 units. This is the opportunity cost.
Learning Objectives
- Acquire knowledge about the idea of opportunity cost and its relevance to choices in production.
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