Question

Question 17 1 pts On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of bananas? 2 pounds of apples 2 pounds of bananas 200 pounds of apples 0.5 a pound of apples 1 pts Question 18

Answer 1

Solution:-

The opportunity cost of bananas = Change in number of apples / Change in number of bananas

= (500 - 300) / (1,300 - 1,200)

= 200 / 100

      = 2 pounds of apples per banana

The opportunity cost of producing a pound of bananas is 2 pounds of apples.

So the answer is an option (A) 2 pounds of apples per banana