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In tutorials, we talked about another approach to determine the opportunity cost, which is to draw a PPF. Suppose in one day, Tim can produce
In tutorials, we talked about another approach to determine the opportunity cost, which is to draw a PPF. Suppose in one day, Tim can produce 10 chairs or 20 tables, and we want to determine the opportunity cost of tables. Which of the following is correct? Question 3 Select one: A. Once we draw the PPF and put the correct goods on both axes, (the absolute value of) the slope can be calculated by the vertical intercept divided by the horizontal intercept B. The opportunity cost of tables is 2 chairs. C. We want to draw the PPF so that chairs are on the horizontal axis and tables are on the vertical axis. D. Once we draw the PPF and put the correct goods on both axes, the absolute value of the slope gives the opportunity cost of the good on the vertical axis in terms of the good on the horizontal axis. E. All of the above are correct
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