Question
The figure below describes a PPF of an economy producing computers and wheat. What is the opportunity costs to produce additional 15 units of computers at Point B?

Wheat - 15 45 6075 80 Computer a. 10 units of wheat b. 20 units of wheat c. 30 units of wheat d. 40 units of wheat
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Answer #1

Ans.- (A)

At point B , economy produces 45 units of computers and 50 units of wheat. At point C, the economy produces 60 units of computers and 40 units of wheat. So, when production of computers increases by 15 units (from 45 to 60) , he production of wheat decreases by 10 units(from 50 units to 40 units). Hence correct answer is A.

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