At One Point Along a PPF, 10 Pizzas and 7

question 368

Multiple Choice

At one point along a PPF, 10 pizzas and 7 sandwiches can be produced. At another point along the same PPF, 9 pizzas and 10 sandwiches can be produced. The opportunity cost of a pizza between these points is________per pizza.

• A) 3 sandwiches
• B) 1/3 of a sandwich
• C) 10/7 of a sandwich
• D) 7/10 of a sandwich

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Definitions:

Bundle

A combination of goods or services that are considered together as a single aggregate.

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the extra utility gained.

Demand Function

A mathematical equation that describes the relationship between the quantity of a good that consumers are willing and able to purchase and its price.

Supply Function

A mathematical representation showing the amount of goods that producers are willing and able to sell at different prices, graphically depicted as a curve.