00:01
So this question is referring to the given figure, and we have production possibilities for potatoes and oranges.
00:12
We have a curve, and then it says that we are at point c.
00:18
The opportunity cost of producing an additional 10 oranges is going to be...
00:24
So we're at point c, and then we want to produce 10 more oranges.
00:28
So we're going to remain on the curve.
00:29
You can see that we go from 20 to 30 oranges, so now we're at d.
00:34
So then we need to determine how many potatoes we gave up.
00:38
So we went from 70 to 40.
00:40
So that means our opportunity cost was 70 potatoes, with 30 potatoes.
00:53
So it would be c.
00:58
If it shifts outward, we need to find what would cause that...