1. How to calculate opportunity costs:
Point
Cupcakes
Brownies A 10 B 5 C 20 10 5
What is the opportunity cost of moving from Point A to B in
Brownie production?
1. Calculate the difference
To go from A to B, you give up 5 cupcakes, and gain 10 brownies.

2. How to calculate opportunity costs:
Point
Cupcakes
Brownies A 10 B 5 C 20 10 5
What is the opportunity cost of moving from Point A to B in
Brownie production?
5 cupcakes
2. Write the sentence: 10 5
The opportunity cost of ______ Brownies is ______ Cupcakes
3. Answer the original question

3. How to calculate opportunity costs:
Point
Cupcakes
Brownies A 10 B 5 C 20 10 20
What is the opportunity cost of producing 10 cupcakes?
20 Brownies
Steps to answer this question:
1. Calculate the difference:
To make 10 cupcakes you give up 20 brownies
2. Write the sentence:
The opportunity cost of 10 cupcakes is 20 brownies
3. Answer the original question:

4. Point
Cellphones
TV’s A 25 B 20 5 C 12 9 D 8 18 E 4 24 F 35
1.What is the opportunity cost of producing 18 TV’s?
2. What is the opportunity cost of producing 20 Cellphones?
3. What is the opportunity cost of moving from point C to point E?
17 cellphones (25-8=17)
30 TV’s (35-5=30)
The opportunity cost of 15 TV’s is 8 cellphones