the economy initially produces 30 million garments of clothing and 20 million tons of coal, which is represented by point A. The opportunity cost of producing an additional 10 million garments of clothing (that is, producing at point B rather than at point A) istons of coal.Suppose, instead, that the economy currently produces 40 million garments of clothing and 16.8 million tons of coal, which is represented by point B.Now the opportunity cost of producing an additional 10 million garments of clothing (that is, producing at point C rather than at point B) istons of coal.Comparing your answers in the previous questions suggests that the opportunity cost of producing 10 million additional garments of clothing at pointB isthe opportunity cost of producing 10 million additional garments of clothing at point A. This reflects theGrade

28 PPC 24 20 16 COAL (Millions of tons) 12 8 0 0 10 20 30 40 50 60 70 80 CLOTHING (Millions of garments) Suppose the economy initially produces 30 million garments of clothing and 20 million tons of coal, which is represented by point A. The opportunity cost of producing an additional 10 million garments of clothing (that is, producing at point B rather than at point A) is tons of coal