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If Apex chooses to produce 500 units of product B instead of 460 of them, why must it give up the production of 400 units of product A?

User Sonal
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Answer:

Apex must give up the production of 400 units of product A because it has limited resources and production capacity. By choosing to produce 500 units of product B instead of 460, it means that it will have to allocate more of its resources and production capacity towards product B and less towards product A. If Apex does not have enough resources and capacity to produce both 500 units of product B and 400 units of product A, it will have to make a trade-off and reduce its production of product A in order to produce more of product B. This is a classic example of the concept of opportunity cost in economics, where the cost of an action is measured by the value of the best alternative that must be given up.

User Dijksterhuis
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