Question

courses > macroeconomics w53 w2025 > ch. 1 the central idea
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the following table lists the production possibilities in a single day for a donut shop.

	muffins	donuts
b	200	1500
c	300	1200
d	400	800
e	500	300

what is the opportunity cost (in donuts) of producing 400 muffins instead of 300 muffins?
□ donuts
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Explanation:

Step1: Identify donut quantities

At 300 muffins: 1200 donuts; at 400 muffins: 800 donuts

Step2: Calculate opportunity cost

Subtract the two donut values: $1200 - 800$

Answer:

400 donuts