Figure 1-7 Shows the Production Possibilities Boundary for an Economy

question 124

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. FIGURE 1-7 Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?

• A)There is no opportunity cost.
• B)420 tonnes of cotton
• C)100 tonnes of cotton
• D)60 tonnes of cotton
• E)920 tonnes of cotton

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