Point x on a linear production possibilities curve represents a combination of 50 watches and 20 clocks, and point y represents 20 watches and 80 clocks. Suppose, clocks are on the vertical axis and watches are on the horizontal axis. The opportunity cost of producing one watch is: four fewer clocks. two fewer clocks. one-fourth fewer clocks. one fewer clock. impossible to determine from the information provided.
Point x on a linear production possibilities curve represents a combination of 50 watches and 20 clocks, and point y represents 20 watches and 80 clocks. Suppose, clocks are on the vertical axis and watches are on the horizontal axis. The opportunity cost of producing one watch is: four fewer clocks. two fewer clocks. one-fourth fewer clocks. one fewer clock. impossible to determine from the information provided.
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 6P
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