Suppose an economy only produces two goods, pizza and tables. Last month, the economy produced 100 pizzas and 10 tables. This month, the same economy produced 125 pizzas and 15 tables. Which of the following statements could NOT explain this change

Question

Alexandria

Business

26 January, 08:51

Suppose an economy only produces two goods, pizza and tables. Last month, the economy produced 100 pizzas and 10 tables. This month, the same economy produced 125 pizzas and 15 tables. Which of the following statements could NOT explain this change

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Answers (1)

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Lucas Hess · Answer 1

This month, the economy experienced a change in the opportunity cost of producing pizza.

Explanation:

Opportunity cost is the forgone cost of doing a particular activity.

The economy produces 100 pizzas and 10 tables. Of opportunity cost of producing pizza had changed then the number of tables produced would have been a lot more a lot less.

However the trend before was still notched as an increase in pizza resulted in proportional increase in table production to 125 pizzas and 15 tables.