Final answer:
The opportunity cost to Toyland of increasing the production of dolls from 200 to 300 is the quantity of other goods or services that could have been produced with the resources used to produce the additional 100 dolls.
Step-by-step explanation:
The opportunity cost to Toyland of increasing the production of dolls from 200 to 300 can be determined based on the concept of increasing opportunity cost. When the production of dolls is increased, Toyland will have to give up the production of other goods and services, which is the opportunity cost. In this case, the opportunity cost would be the quantity of other goods or services that could have been produced with the resources used to produce the additional 100 dolls. For example, if Toyland decides to produce 300 dolls instead of 200, it may have to reduce the production of another toy, such as action figures, by a certain quantity. Let's assume that reducing the production of action figures by 50 units is necessary to produce the additional 100 dolls. In this case, the opportunity cost to Toyland of increasing the production of dolls from 200 to 300 would be the 50 action figures that could have been produced instead.