Opportunity Cost

Which statements demonstrate the meaning of opportunity cost for producers and consumers? Check all that apply.

-If producers can only produce one item, they must decide which item to produce based on profit. -Consumers are limited by their resources, and must give up the chance to purchase one item in order to buy another. -When deciding to produce or purchase one item, another opportunity must be given up.

What could happen as a result of the effects of the opportunity cost on the left? Check all that apply.

-missing out on spending time with friends -gives up a chance to have fun

Raj wants to expand his bakery business to include bagels. In one hour of work, Raj can make 60 doughnuts or 30 bagels. Use the drop-down menu to complete the production possibility schedule.

1.) 30 2.) 120 3.) 90

Refer to the graph and use the drop-down menu to answer each question. At what point is Raj not using all of his resources? y At what point would Raj be using more than his available resources? X

1.)Y 2.)X