Answer:
3000 pair of shoes
Explanation:
Opportunity cost can be defined as the thing or option you must compromise , to go for another option. In the given question, the opportunity cost will be the loss in number of shoes, when the company wants to make 4000 additional briefcases.
Lets consider the graph. It is stated that the company is currently at point D, which means that the company is making 3000 briefcases and 5000 thousand pairs of shoes.
If the company wants to make additional 4000 briefcases, the total number of briefcases will become
3000+4000 = 7000 briefcase
Which occurs at point B.
We can see that at point B, number of pairs of shoes drop to 2000.
Which means that the opportunity cost is:
5000 - 2000 = 3000 pairs of shoes
Thus, company will have to compromise 3000 pair of shoes to make additional 4000 briefcases.
