Question 25 Figure 26 Forks 44 60 90 Spoons 80 thousands Ref

Question 25 Figure 2-6 Forks 44 60 90 Spoons 80 (thousands) Refer to Figure 2-6. If the economy is currently producing at point C what is the opportunity cost of moving to point B? 201 spoons Question 26

Solution

Production at C = 80,000 spoons and 20000 forks. Production at B =  60,000 spoons and 46000 forks. A movement from C to B increases forks by 26000 and reduces spoons by 20000. Hence the opportunity cost of moving to B is reduction of 20000 spoons

Select 20000 spoons