Questions: Question 11 Use the data in the Production Possibilities Schedule below to answer the question Combination School Buses Refrigerators --------- A 0 20 B 1 18 C 2 14 D 3 8 E 4 0 The opportunity cost of moving from point C to point D is refrigerators. - 12 - 8 - 6 - 14

Question 11

Use the data in the Production Possibilities Schedule below to answer the question

Combination  School Buses  Refrigerators
---------
A  0  20
B  1  18
C  2  14
D  3  8
E  4  0

The opportunity cost of moving from point C to point D is refrigerators.
- 12
- 8
- 6
- 14
Transcript text: Question 11 Use the data in the Production Possibilities Schedule below to answer the question \begin{tabular}{|c|c|c|} \hline Combination & School Buses & Refrigerators \\ \hline A & 0 & 20 \\ \hline B & 1 & 18 \\ \hline C & 2 & 14 \\ \hline D & 3 & 8 \\ \hline E & 4 & 0 \\ \hline \end{tabular} The opportunity cost of moving from point $C$ to point $D$ is $\qquad$ refrigerators. 12 8 6 14
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Solution

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The answer is the third one (or C): 6 refrigerators.

Explanation: To determine the opportunity cost of moving from point C to point D, we need to look at the change in the number of refrigerators produced when the production of school buses increases from 2 to 3.

From the table:

  • At point C: 2 school buses and 14 refrigerators.
  • At point D: 3 school buses and 8 refrigerators.

The opportunity cost is the number of refrigerators forgone to produce one additional school bus.

Calculating the difference in refrigerators: 14 (at point C) - 8 (at point D) = 6 refrigerators.

Therefore, the opportunity cost of moving from point C to point D is 6 refrigerators.

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