Can someone please explain question 4! How is the opportunity cost 3! I get 2 bu

Question

Can someone please explain question 4! How is the opportunity cost 3! I get 2 but it’s incorrect the answer is 3! ECON 2302-04: Principles of Microecono dics 2.1 Production Possibilities and Opportunit Worked Problem Parts 3 and 4 Leisure Island has 50 hours of labor a day that it can use to produce entertainment and good food. The t shows the maximum quantity of each good that Leisure Island can produce with different quantities of lab 3. If Leisure Island produces 8shows and 5 meals a week, do the people of Leisure Island face a tradeof A. No, it doesn't face a tradeoff. B. Yes, it faces a tradeoff. A. Suppose that Leisure Island produces 4 shows and 12 meals a week. Calculate the opportunity cost of producing 2 additional shows a week? The opportunity cost of producing 2 aditional shows per week is 3 meals per week All parts showing

Explanation / Answer

Solution: 3 meals

Working: The opportunity cost of producing 2 additional shows a week is 3 meals. It is computed as: at 6 shows the opportunity cost in terms of meal equals 3 (=12 meals - 9 meals)

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