Scenario 1: If the company constructs 9 apartment buildings, the number of stores will be . Scenario 2: If the company is producing at point C, the opportunity cost of building 3 more stores will be apartment buildings.

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22-07-2022
Business

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Scenario 1: If the company constructs 9 apartment buildings, the number of stores will be . Scenario 2: If the company is producing at point C, the opportunity cost of building 3 more stores will be apartment buildings.

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-07-27T18:59:16+02:00

The number of stores will be 3 and the opportunity cost of building 3 more stores will be 6 apartment buildings.

How to explain the opportunity cost?

The Vertical Line represents the number of Stores. The horizontal line represents the number of Apartments.

Take a look at point E. When the apartment is 9, the stores that they could build is 3.

In point C, the company produces 6 Apartments and 7 Stores. If the company wants to build 3 more stores it would become 10 stores. Take a look at point A. Where the stores are 10, the company cannot build any apartments, which means that they had to sacrifice all 6 from point C.

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