Question 63
MediumOriginal questionAn economy can produce these combinations of guns and butter.
| Guns | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| Butter (tonnes) | 50 | 48 | 44 | 38 | 30 | 20 |
What is the opportunity cost of the fifth gun?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Going from 4 to 5 guns, butter falls from 30 to 20 tonnes.
So the fifth gun costs 10 tonnes of butter.
Worth noting
20 is the butter left; 30 is the total butter given up for all five guns.
- Concept
- Marginal opportunity cost
- Typical timeTypical
- 70 s
- Your timeYours
- —
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