Question

question 6 (mandatory) (3.0303 points)
exhibit 1-4
production possibilities for computers and tv sets

combination	computers	tv sets
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 sixth tv set is
a) 15 units of computers.
b) 42 units of computers.
c) 5 units of computers.
d) 1 unit of computers.

Explanation:

Step1: Identify relevant production points

To produce the 6th TV set, we move from combination G (0 TVs, 43 computers) to combination A (6 TVs, 0 computers). The 6th TV is the last unit added when going from 5 to 6 TVs, so we compare combination B (15 computers, 5 TVs) to combination A (0 computers, 6 TVs).

Step2: Calculate opportunity cost

Opportunity cost = Computers given up = Computers at B - Computers at A
$\text{Opportunity cost} = 15 - 0 = 15$

Answer:

a) 15 units of computers.