erinaphillips155 erinaphillips155
  • 10-07-2020
  • Business
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Suppose Azerbaijan decides to increase its production of nails by 20. What is the opportunity cost of this decision

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Parrain
Parrain Parrain
  • 14-07-2020

Answer: c. 5 bolts.

Explanation:

From the graph we see that the opportunity cost of making 80 nails is 20 bolts.

Opportunity cost of making 1 nail is;

80/80 : 20/80

1 : ¼

If 1 nail has an opportunity cost of ¼ bolts then making 20 extra nails would cost;

= 20 * ¼

= 5 bolts.

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