[thm_125]

Guns (hundred) 6 5 4 3 2 1 0
Butters (tons) 0 5 10 15 20 25 30

What is the opportunity cost of increasing gun production from 100 to 200.

[Curlyben]

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

[ma0641]

Figure the ratios between guns to butter and than go from there.

[thm_125]

I simplified 100 to 200 and I have 1 to 2 (or 1/2)
Then I found the ration between guns and butters is 1:5
So the opportunity cost of increasing gun production from 100 to 200 is: 10 tons of butter
Is it right?

[ma0641]

Here is another example to help you.
21) Suppose a country, when operating on its PPF, can produce 2 tons of butter and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is A) 200 cars. B) 300 cars. C) 50 cars. D) 0.75 cars. The answer is "C"

When you went from 100 guns to 200 guns, how many tons of butter was lost?