If an economy moves from producing 10 units of A and 4 units of B to producing 7 As and 5Bs The opportunity cost of the 5th B is ?
Correct answer: C. 3As
- A. 7As
- B. 10As
- C. 3As
- D. 1A
Explanation
Increasing B from 4 to 5 requires reducing A from 10 to 7, so the opportunity cost of the fifth B is 3 units of A. Opportunity cost is the output of the next-best alternative forgone.
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