At point A on a production possibilities curve, there are 50 tons of rice and 60 tons of barley. At point B on the same curve, there are 40 tons of rice and 80 tons of barley. If the farmer is currently at point A, the opportunity cost of moving to point B is __________.
10 tons of rice. The opportunity cost is what you are getting less of as a result of increasing production of something else. Going from point A to B meant producing an extra 20 tons of barley, but it also meant an opportunity cost of 10 tons of rice.