Iceland Produces Two Goods: Viking Hats (Y) and Fish (X)

Multiple Choice

Iceland produces two goods: Viking hats (Y) and fish (X) . Its production possibilities frontier is characterized as: Y = 50 - 2X. What is the opportunity cost of producing a tenth unit of fish (i.e., going from nine units of fish production to 10) ?

A) 0.5 units of fish
B) 2 units of fish
C) 0.5 Viking hats
D) 2 Viking hats