At the Point at Which It Is Currently Producing, Britain

question 158

Essay

At the point at which it is currently producing, Britain must give up the production of 75 hats to produce 25 additional sweaters.The opportunity cost of producing 4 sweaters is hats.
A.4
B.12
C.71
D.79

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Definitions:

Labor

The use of human labor, be it physical or intellectual, in generating goods and services.

MRTS

Marginal Rate of Technical Substitution. It's the rate at which one input can be reduced for every increase in another input, keeping output constant.

Labor

The application of human physical and mental efforts in the creation and offering of goods and services.

Capital

Assets that are used in the production of goods and services, often classified into physical capital (like machinery) and financial capital.