Figure 2-5 shows five different points along the production possibilities fronti

Question

Figure 2-5 shows five different points along the production possibilities frontier for a country that produces rockets and cruise ships. If the country is currently operating at point C and decided to move to point B Figure 2-5 # Rockets 20 18 #Cruise Ships 10 12 13 A. the opportunity cost would be four rockets it could not do so, given the current state of technology and quantity of resources the country would have to forego producing six cruise ships the opportunity cost of four more rockets would be four cruise ships the opportunity cost would be six rockets

Explanation / Answer

Answer
Option D
The opportunity cost is the foregone opportunity and here the opportunity cost to produce 18 rockets instead of 14 is decreasing productions of ships from 10 to 6, means in net 4 Rockets increase of production decreases 4 ships production so the opportunity cost is 4 Cruise ships.

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