10 WRONG
B and A
Two consecutive points along the PPC is the opportunity cost of DVDs increasing.
What is the opportunity cost of moving from point C to D?
- The opportunity cost of moving from point C to D is 40 tons of oranges.
- The per-unit opportunity cost of moving from point C to point D is 1/2 ton of oranges (40 tons of oranges/80 tons of pears). Economic growth is shown by a shift to the right of the production possibilities curve.
What is the opportunity cost of computers?
- Opportunity cost is a different metric for cost.
- The amount of wheat that could be produced using the labor required to make one computer, in our example, is the opportunity cost of a computer.
- Comparative advantage is the capacity to produce a good at a lower opportunity cost than another producer.
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