Question 38
Basic ConceptsCombination | Beans (Units) | Rice (Units)
K | 15 | 19
L | 20 | 17
M | 24 | 16
The table above shows the combinations of beans and rice that can be purchased by a consumer. The opportunity cost of moving from K to L is
- A.2 units of rice
- B.5 units of beans
- C.17 units of rice
- D.20 units of beans
Show the answer and explanation
Answer: A (2 units of rice)
Explanation
Moving from K to L gives 5 more units of beans but rice falls from 19 to 17, so 2 units of rice are given up.