A. Opportunity Cost What must be given up for making one choice over another? Opportunity cost of a decision is only the next best option not all possible options B. Calculating the opportunity Cost The Democratic Republic of Zahraguay can produce either Computers or Books as per the following schedule. Computers Books Task 1 A 300 0 Create a PPC Curve B 150 250 C 0 500 Task 2 Calculate the Opportunity Cost Computers OPPORTUNITY COST rs MEASURED IN TERMS OF WHAT IS GWEN UP Opportunity cost of Computers = Task 2 Therefore the opportunity cost of Calculate the Opportunity Cost Books OPPORTUNITY COST IS MEASURED .l'N TERMS OF WHAT IS GWEN UP Opportunity cost of Books 2 D. Formula 0 ortun' Cost of X = Decrease in Y Increase in X Therefore the opportunity cost of Note: It is the slope of the graph