7191984 - if the economy was at A then we gain 50 heath by...

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Combination Health Care All Other Goods A 0 100 B 25 90 C 50 70 D 75 40 E 100 0 opportunity cost Is defined as the cost of foregone alternatives. so ifC is being produced, the opp cost depends on the point ofproduction before C If theeconomy was at B opp cost is 20 units of all other goods as we have given up 20 units of a therefore the opp cost of 1 unit of health care is 20/25=.8 units of other goods.
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Unformatted text preview: if the economy was at A then we gain 50 heath by giving up 30 of all other goods. So opp cost o if we are at D and nove to C we gain 30 of othergoods and loose 25 of health, so the opp cost o b. What is the opportunity cost of combination C? all goods for 25 more of health care. of 1 unit of health= 30/50=.6 of other goods is 25/30=.666...
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7191984 - if the economy was at A then we gain 50 heath by...

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