economics- opportunity cost (1 Viewer)

[spirals]

this will probably seem like a realtively simple question.... but how do you work out the opportunity cost from a graph, i understand the concept and what it means and get the idea with a table, but i got it wrong looking at a graph in a class test and cant understand where the right answer comes from

thanks for any help!

 

[m0ofin]

Hey Spirals, (I'm not sure if I've done it right)
If you're unsure on how to interpret the graph but get the table, try turning the coordinates of the points in the graph into your own table.
Graph
I'm aware you understand the concept but yeah, info + picture = coolness ^^"

If you wanted to go from pt A to pt C, you'd have to forego 10 units of food to get 50 units of clothing. Therefore the opportunity cost of getting 50 units of clothing is 10 units of food.

And to calculate the opp.cost of getting individual units of clothing, you'd divide the 10 units foregone by the 50 units gained.
Therefore, 10/50 = 1/5

 

[spirals]

thanks so much!! i understand now...