Suppose the economy is operating at point C

Economics Dec 16, 2020

Suppose the economy is operating at point C. The opportunity cost of producing the fourth freight train would be: Figure: Sugar and Freight Traius Tons of sugar (per period) 244 225 .C 180 100 Quantity of freight trains (per period) O B0 tens of sugar O 19tons of wuge O45ons of sugar O3 freight trains

Expert Solution

The answer is 80 tons of sugar

Currently at the production point C, a total of 180 tons of sugar is produced. When one more freight train is produced, the economy moves to point D where 100 tons of sugar are now produced. this is shows A reduction of 80 tons of sugar to produce one additional freight train which becomes its opportunity cost.

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