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Dennis_Churaev
25 days ago
7

Consider two points on the production possibilities frontier (PPF): point A, at which there are 50 oranges and 100 apricots, and

point B, at which there are 51 oranges and 98 apricots. If the economy is currently at point B, the opportunity cost of moving to point A is
Business
1 answer:
arsen [3.4K]25 days ago
5 0

Answer:

1 orange

Explanation:

Below are the possible choices for this question:

b. 1 orange.

c. 98 apricots.

d. 3 oranges.

The Production possibilities frontier is a graph that illustrates the different combinations of two goods that a firm can produce when all its resources are optimally utilized.  

When output of one product increases, the resources available for producing the other good diminish. Consequently, the quantity of the alternative product that can be produced decreases. Thus, the opportunity cost for producing any good rises as its production escalates.

Transitioning from point A would entail sacrificing

51 - 50 = 1 oranges

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