Questions: Refer to Figure 2-3. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is a. 0 washers. b. 20 washers. c. 40 washers. d. impossible to calculate because the economy cannot move from point D to point C.

Solution Steps

At point D, the economy produces 50 washers and 40 dryers.

At point C, the economy produces 10 washers and 80 dryers.

Moving from point D to point C, the number of dryers increases from 40 to 80, which is a gain of 40 dryers.

Moving from point D to point C, the number of washers decreases from 50 to 10, which is a loss of 40 washers.

The opportunity cost of obtaining 40 additional dryers is the number of washers that must be given up, which is 40 washers.

Final Answer