Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of grapes is

A. the 5 bushels of grapes that must be forgone.
B. the 0.2 bushels of olives that must be forgone.
C. the additional 0.2 gallons of olives that can be produced.
D. the 5 bushels of olives that must be forgone.


Answer: B

Economics

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