The opportunity cost of producing one more unit of a good is calculated by dividing the
A) total quantity of the other good by the total quantity of the good whose opportunity cost we're calculating.
B) decrease in the quantity of the other good by the increase in the quantity of the good whose opportunity cost we're calculating.
C) price of the good whose opportunity cost we are calculating by the number of units of the other good that are forgone.
D) total quantity of that good by the total quantity of other good.
E) increase in the quantity of that good by the decrease in the quantity of other good.
B
You might also like to view...
Which of the following is NOT considered a payment in the balance of payments?
A) capital outflows B) U.S. foreign aid to other countries C) imports of goods D) exports of services
Exhibit 14A-1 Aggregate demand and supply model
Based on Exhibit 14A-1, when the aggregate demand curve shifts to the position AD2 and the economy is operating at point E2, the economy's position of long-run equilibrium corresponds to point:
A. E1. B. E2. C. E3. D. E1 or E3.