15. The opportunity cost of producing a bicycle refers to the a.out-of-pocket pa

Question

15. The opportunity cost of producing a bicycle refers to the a.out-of-pocket payments made to produce the bicycle b. value of the goods that were given up to produce the bicycle bicycle's retail price d.marginal cost of the last bicycle produced. 16. The firm's expansion path records profit-maximizing output choices for every possible price cost-minimizing input choices for all possible output levels for when input rental rates expand along with production. cost-minimizing input choices for all possible output levels for a fixed set of input prices. cost-minimizing input choices for profit-maximizing output levels, 17. The Cobb-Douglas production function q=k5175 yields the cost function d (where B is a constant) a. 45 112 4/5 2/5

Explanation / Answer

Question 15

The opportunity cost of producing a good is the cost or value of a good that has to be given up to produce the said good.

However, it is the cost of next best alternative foregone that qualifies as the opportunity cost of producing a good.

So, the opportunity cost of producing a bicycle refers to the value of the good that were given up to produce the bicycle.

Hence, the correct answer is the option (b).

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