This question is about using the production possibilities curve to analyze trade-offs. Tesla assembles sedans and SUVs and has an 8-hour day. The following table shows the trade-offs Tesla faces in allocating the time.

Hours Spent Making            Quantity Produced Per day Choice

Sedans                SUVs            Sedans            SUVs

  6                            2                    90                   20

  3                            5                    45                   50

If Tesla is producing at these two situations, the opportunity cost of increasing the production of SUVs by 10 will be how many Sedans?

Answer rating: 100% (QA)

As the number of SUV produced in... View the full answer