Question

Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the

economy is currently at point A, the opportunity cost of moving to point B is_________--

Answer 1

4 apples

Step-by-step explanation:

Given that

Point A = 50 apples and 40 pears

Point B = 46 apples and 41 pears

These points are located on the PPF at which various combinations of products are displayed by available resources and technologies.

So, the opportunity cost of moving from Point A to Point B would be 4 apples which is shown below:

= Point A apples - Point B apples

= 50 apples - 46 apples

= 4 apples