Point a on a Linear Production Possibilities Curve Represents a Combination

question 70

Multiple Choice

Point A on a linear production possibilities curve represents a combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The opportunity cost of a cup of coffee is:

• A) 3 cappuccinos
• B) 9 cappuccinos
• C) 1/3 of a cappuccino
• D) 6 cappuccinos

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