54.4k views
4 votes
Suppose Azerbaijan decides to increase its production of nails by 20. What is the opportunity cost of this decision

1 Answer

6 votes

Answer: c. 5 bolts.

Step-by-step explanation:

From the graph we see that the opportunity cost of making 80 nails is 20 bolts.

Opportunity cost of making 1 nail is;

80/80 : 20/80

1 : ¼

If 1 nail has an opportunity cost of ¼ bolts then making 20 extra nails would cost;

= 20 * ¼

= 5 bolts.

Suppose Azerbaijan decides to increase its production of nails by 20. What is the-example-1
User Elias Soares
by
8.4k points