THE PRODUCTION POSSIBILITIES TABLE BELOW SHOWS THE HYPOTHETICAL RE...

99. 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?4 units of consumer goods5 units of consumer goods→ 6 units of consumer goods7 units of consumer goodsGoing 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). AACSB: AnalyticBlooms: UnderstandDifficulty: 1 EasyLearning Objective: 01-05 Apply production possibilities analysis; increasing opportunity costs; and economic growth.Topic: Production possibilities modelMultiple Choice Question