Question

if this economy is currently producing at point c then the opportunity cost of providing 100 additional units of medical care would be

Answer 1

The correct option is:  B.

The opportunity cost of providing 100 additional units of medical care would be 400 warheads.

What is opportunity cost?

According to microeconomic theory, an activity's opportunity cost is the value or advantage that would be lost if it were chosen over another that would provide a higher return on investment.

What is opportunity cost and example?

When economists speak of a resource's "opportunity cost," they are referring to the cost of the next-highest alternative usage of that resource.

For instance, if you spend time and money going to the movies, you are not allowed to read a book at home during that time or spend the money on anything else.

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I understand that the question you are looking for is:

Refer to the figure below. If this economy is currently producing at point C, then the opportunity cost of providing 100 additional units of medical care would be:

Select one:

a. 800 warheads.

b. 400 warheads.

c. 200 warheads.

d. 100 warheads.