I know its C but why According to the table above if the eco
I know it\'s C, but why?
According to the table above, if the economy is currently producing at point E, the opportunity cost of one additional unit of clothing is approximately 1/7 units of food. 5 units of food. 7 units of food. 25 units of food. 35 units of food.Solution
Dear,
I don\'t think the answer is C but B. Correct me with reasoning please.
The economy is already producing at point E. Then to produce 5 additional unit of clothing the economy will sacrifice 25 units of food. This can be seen from the table that when the economy intends to move from E to F it will have to sacrifice 25 units of food to produce for 5 more units of clothing. Then for one additional unit of clothing the opportunity cost should be = 25/5 = 5 units of food.
