The Production Possibilities Table Below Shows the Hypothetical Relationship Between

Multiple Choice

The production possibilities table below shows the hypothetical relationship between the production of capital goods and consumer goods in an economy. Refer to the table above.What is the opportunity cost of producing the third unit of capital goods?

A) 4 units of consumer goods
B) 5 units of consumer goods
C) 6 units of consumer goods
D) 7 units of consumer goods
Going from C to D is a one-unit increase in capital goods and it costs 6 units of consumer goods (from 13 down to 7) .