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Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The opportunity cost of a cup of coffee is:

Respuesta :

The opportunity cost of a cup of coffee is 1/3 cups of cappuccinos.

What is the production possibilities curve?

The Production possibilities curve is a line that depicts the various combination of two goods a nation / individual / firm can produce when all its resources are fully utilised.

What is the opportunity cost?

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives . As more coffees are produced less cappuccinos can be made.

The opportunity cost of a cup of coffee = (6 - 3) / (12 - 3) = 3/9 = 1/3.

To learn more about opportunity cost, please check: https://brainly.com/question/26315727

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