Question

Venya and Kari own a flower shop that specializes in custom bouquets. Wanting to expand into selling potted plants, they create a production possibility chart to asses whether the potted plants are a good idea. Study their chart: How many potted plants should they be able to produce on Day 3? (A. 25) (B. 30) (C.50) (D.75)

Answer 1

The correct answer is C. 50.

The question and the answer have to do with opportunity cost. The opportunity cost in terms of macroeconomy refers to make a particular choice in which is the value of the most valuable choice out of those that were not taken in the options given. So,  the option on day 3 is 50 potted plants that they should be able to produce.