2. The opportunity cost of shifting production choices

The following graph shows the production possibilities frontier (PPF) of an economy that produces clothing and oil. The black points (crosssymbols) represent three possible output levels in a given month. (Hint: You can click on the points to see their exact coordinates.)

Refer to the following graph to answer the questions that follow.

0801602403204004805606404035302520151050CLOTHING (Thousands of garments)OIL (Thousands of barrels)PPFBCA400, 15

Suppose the economy initially produces 15,000 garments of clothing and 400,000 barrels of oil, which is represented by point A. The opportunity cost of producing an additional 5,000 garments of clothing (that is, moving production to point B) is