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If an economy is producing efficiently and has chosen to produce and consume 12 units of X and...

Question:

If an economy is producing efficiently and has chosen to produce and consume 12 units of X and 128 units of Y. At this point on the production possibilities frontier, one can use calculus to obtain the opportunity cost of Y as:

A) -12

B) -6

C) 0

D) {eq}\frac{1}{6} {/eq}

E) 3

F) {eq}4 \frac {1}{3} {/eq}

G) 5

H) 6

J) none of the above

1) 8

Opportunity Cost

The opportunity cost is the cost of losing an opportunity. Among various alternatives available, one has to be chosen. The cost of rejecting other alternatives to choose one is the opportunity cost.

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Opportunity Cost: Definition & Examples

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Chapter 1 / Lesson 2
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What is Opportunity Cost? Learn the definition and explore real-life examples of this concept. Also, learn the types of opportunity costs and what they represent.


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