Question

The Production Possibilities Frontier A represents 35 refrigerators and 35 cars B represents 30 refrigerators and 40 cars C represents 20 refrigerators and 50 cars. 1. What is opportunity cost for this country i

Answer 1

The opportunity cost will be 5 refrigerators.

Explanation:

Opportunity cost is simply defined as the cost of what one forgoes on order to get something else. Opportunity cost occurs due to the scarcity of resources.

The opportunity cost for the country will be 5 refrigerators. This is due to the fact that when the economy moves from A to pmB, there will be a reduction in the 5 refrigerators that are produced by 5.