If a country can produce 10 of product A or 4 of product B the opportunity cost of 1B is ?
Correct answer: B. 2.5A
- A. 0.4A
- B. 2.5A
- C. 10A
- D. 1B
Explanation
Producing 1 unit of B sacrifices 10/4, or 2.5, units of A. Therefore, the opportunity cost of 1B is 2.5A.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
International difference is opportunity costs lead to countries acquiring ?
A tariff causes domestic firms to ________ and consumers to?
If goods are exported for less than society's marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
Tariffs are used to protect infant industries these industries are those which ?
If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?
One of the main advantages of trade economists suggest is ?