Question

question 5 (mandatory) (3.0303 points)
exhibit 1-4
production possibilities for computers and tv sets
combination | computers | tv sets
a | 0 | 6
b | 15 | 5
c | 25 | 4
d | 33 | 3
e | 39 | 2
f | 42 | 1
g | 43 | 0
refer to exhibit 1-4. the opportunity cost of producing the first tv set is
a) 42 units of computers.
b) 5 units of computers.
c) 1 unit of computers.
d) 43 units of computers.

Explanation:

Step1: Identify relevant combinations

To produce the first TV set, we move from combination G (0 TV sets, 43 computers) to combination F (1 TV set, 42 computers).

Step2: Calculate opportunity cost

Opportunity cost = Computers at G - Computers at F
$\text{Opportunity Cost} = 43 - 42 = 1$

Answer:

c) 1 unit of computers.