In Figure 1.6, given below (a) If as much health care as possible is provided, how many

Question:

In Figure 1.6, given below

(a) If as much health care as possible is provided, how many other goods will be provided?

(b) What is the opportunity cost of increasing health care from H1 to H2?

Hmax Хз X2 На X, Н, O, 0, Omax OTHER GOODS (units per year) HEALTH CARE SERVICES (units per year)

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...