Question

The table shows the production possibilities curve for Country X in producing shirts and chairs when it uses all its available resources. The opportunity cost of producing one additional chair is

Answer 1

The opportunity cost of producing one additional chair can be determined by examining the slope of the production possibilities curve. The slope of the curve represents the rate at which one good must be given up to produce an extra unit of the other good.

Step-by-step explanation:

The opportunity cost of producing one additional chair can be determined by examining the slope of the production possibilities curve. The slope of the curve represents the rate at which one good must be given up to produce an extra unit of the other good.

In this case, since the table shows the production possibilities curve for Country X in producing shirts and chairs, we can look at the slope of the curve to determine the opportunity cost.

For example, if the curve has a slope of 2, it means that to produce one additional chair, Country X must give up the opportunity to produce 2 shirts. Therefore, the opportunity cost of producing one additional chair would be 2 shirts.