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    Question

    If the economy is operating at point C, the opportunity

    cost of producing an additional 20 units of bacon is
    A 40 units of eggs Correct Answer Incorrect Answer
    B 10 units of eggs Correct Answer Incorrect Answer
    C 20 units of eggs Correct Answer Incorrect Answer
    D 50 units of eggs Correct Answer Incorrect Answer

    Solution

    Opportunity cost is the value of the next best alternative. At C, MRT = 20/50 = 0.4

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