Figure 1-7 Shows the Production Possibilities Boundary for an Economy

Multiple Choice

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. FIGURE 1-7 Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?

A) There is no opportunity cost.
B) 420 tonnes of cotton
C) 100 tonnes of cotton
D) 60 tonnes of cotton
E) 920 tonnes of cotton