The chart shows a production possibilities schedule for Sabrina’s Soccer.
Combination: Soccer balls: Soccer nets:
A 10 0
B 8 1
C 6 2
D 4 3
E 2 4
F 0 5
Which statement correctly explains the chart?
A. The opportunity cost of producing one soccer net is eight soccer balls.
B. The opportunity cost of producing two soccer nets is two soccer balls.
C. The opportunity cost of producing two soccer balls is one soccer net.
D. The opportunity cost of producing four soccer balls is three soccer nets.
The opportunity cost of producing two soccer balls is one soccer net.
Answer: Option 3
<u>Explanation:</u>
Opportunity cost is when a particular option is chosen from the alternatives given, the opportunity cost is the cost incurred by not enjoying the benefit associated with the best alternative choice.
The problem of the opportunity cost occurs because the resources given in the economy are limited in availability and there fore because of that there has to be some choices that are to be made among the alternatives given in the economy.
In this example it shows that for producing two soccer balls, the opportunity cost is one soccer net.
