DIRECTIONS: Read the question and select the best response.
What would be the firm's opportunity cost if it moved production from Point A to
Point B along the following production possibilities curve?
This
is a Cartesian line graph titled Production Possibilities Curve. The X-axis is 6.8
cm long, is in bold font, and is titled Pants. The X and Y axes share an origin
point that is labeled 0. At 1.6 cm intervals to the right of the origin point there
are 4 vertical light gray lines. The vertical light gray lines, which are 7.2 cm
long, start at the X-axis and run parallel to the Y axis. Each of the four vertical
gray lines has a label on the X-axis. The first vertical gray line is labeled 25.
The second vertical gray line is labeled 50. The third vertical gray line is labeled
75. The fourth vertical gray line is labeled 100. The numerical labels on the X-axis
are not in bold font. The Y-axis is 7.2 cm long, is in bold font, and is titled
Shirts. At 1.4 cm intervals above the origin point there are five horizontal gray
lines. The horizontal gray lines, which are 6.8 cm long, start at the Y-axis and
run parallel to the X-axis. Each of the five horizontal gray lines has a label on
the Y-axis. The first horizontal gray line is labeled 10. The second horizontal
gray line is labeled 20. The third horizontal gray line is labeled 30. The fourth
horizontal gray line is labeled 40. The fifth horizontal gray line is labeled 50.
The numerical labels on the Y-axis are not in bold font. On the graph is a bold
curved line that is thicker than the axes lines. The curve starts at the point (0,50).
The curve runs through the following points before ending at the point (100,0):
(25,47), (50,40), (75, 30), (83, 20). On the curve two points have been marked with
dots and labeled. The first point is at (50,40) and is labeled, in bold font, A.
The second point is at (75,30) and is labeled, in bold font, B.
AnswerEnter
to expand or collapse answer.Answer expanded
This is a Cartesian line graph titled Production Possibilities Curve. The X-axis is 6.8 cm long, is in bold font, and is titled Pants. The X and Y axes share an origin point that is labeled 0. At 1.6 cm intervals to the right of the origin point there are 4 vertical light gray lines. The vertical light gray lines, which are 7.2 cm long, start at the X-axis and run parallel to the Y axis. Each of the four vertical gray lines has a label on the X-axis. The first vertical gray line is labeled 25. The second vertical gray line is labeled 50. The third vertical gray line is labeled 75. The fourth vertical gray line is labeled 100. The numerical labels on the X-axis are not in bold font. The Y-axis is 7.2 cm long, is in bold font, and is titled Shirts. At 1.4 cm intervals above the origin point there are five horizontal gray lines. The horizontal gray lines, which are 6.8 cm long, start at the Y-axis and run parallel to the X-axis. Each of the five horizontal gray lines has a label on the Y-axis. The first horizontal gray line is labeled 10. The second horizontal gray line is labeled 20. The third horizontal gray line is labeled 30. The fourth horizontal gray line is labeled 40. The fifth horizontal gray line is labeled 50. The numerical labels on the Y-axis are not in bold font. On the graph is a bold curved line that is thicker than the axes lines. The curve starts at the point (0,50). The curve runs through the following points before ending at the point (100,0): (25,47), (50,40), (75, 30), (83, 20). On the curve two points have been marked with dots and labeled. The first point is at (50,40) and is labeled, in bold font, A. The second point is at (75,30) and is labeled, in bold font, B.