Use the following to answer question 7:
Point Bread Tractor
A 20 0
B 18 1
C 14 2
D 8 3
E 0 4
Refer to the above schedule. Starting at point A, the opportunity cost of producing each successive unit of tractors is:
a constant 2 units of bread
8, 6, 4, and 2 units of bread
2, 4, 6, and 8 units of bread
D) the reciprocal of the output of tractors
To find the opportunity cost of producing each successive unit of tractors, we need to compare the decrease in the production of bread as the production of tractors increases.
In this case, we can observe that the production of tractors increases by 1 unit for each point (A to B, B to C, C to D) and the production of bread decreases accordingly.
From point A to B, the production of bread decreases from 20 to 18, which means the opportunity cost of producing 1 additional tractor is 2 units of bread.
From point B to C, the production of bread decreases from 18 to 14, which means the opportunity cost of producing 1 additional tractor is 4 units of bread.
From point C to D, the production of bread decreases from 14 to 8, which means the opportunity cost of producing 1 additional tractor is 6 units of bread.
From point D to E, the production of bread decreases from 8 to 0, which means the opportunity cost of producing 1 additional tractor is 8 units of bread.
Therefore, the correct answer is option B) 8, 6, 4, and 2 units of bread.