📚 Learning Guide
Calculating Opportunity Costs
medium

If choosing to produce more of Product A results in the sacrifice of Product B, then choosing to produce more of Product C should result in the sacrifice of which of the following? A: Product D

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Learning Path

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Choose the Best Answer

A

Product D

B

Product E

C

Product F

D

Product G

Understanding the Answer

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Answer

When we decide to produce more of one product, we often have to give up some of another product due to limited resources like time, money, or materials. This situation is called an opportunity cost, which is the value of what we lose when we make a choice. If producing more of Product A means we have to produce less of Product B, then the same idea applies when we consider producing more of Product C. If we choose to make more of Product C, we will have to sacrifice some of another product, which in this case is Product D. For example, if a factory decides to produce more bicycles (Product C), it might have to reduce the number of scooters (Product D) it makes because it cannot use the same resources for both.

Detailed Explanation

When you decide to make more of one product, you often have to give up making another. Other options are incorrect because Some might think that any product can be sacrificed; It's easy to think any product could be affected.

Key Concepts

Opportunity Costs
Comparative Advantage
Resource Allocation
Topic

Calculating Opportunity Costs

Difficulty

medium level question

Cognitive Level

understand

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