A textile firm can produce a limited number of shirts or pants with its available resources. The firm initially produced 500 pants and 700 shirts. If the firm decides to increase the number of shirts by 100 units, the opportunity cost will be pants. If the firm is at point E and decides to increase the production of shirts by 500 units, the opportunity cost will be pants.

If the firm decides to increase the number of shirts by 100 units, the opportunity cost will be 200 pants. If the firm is at point E and decides to increase the production of shirts by 500 units, the opportunity cost will be 400 pants.

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divyamadaan8054 divyamadaan8054 · Answer 2 · 2022-03-21T19:25:21+01:00

The opportunity cost here are 200 pants for 100 shirts and 400 pants for 500 shirts.

What is Opportunity Cost?

Opportunity cost is defined as the cost that forgone to accept the next best alternative option.

Therefore, here the firm has to sacrifice 200 units of pants to produce 100 more units of shirts and when the firm is at point E, it has to sacrifice 400 units of pants to produce 500 more units of shirts.

Learn more about Opportunity Cost, refer to the link:

https://brainly.com/question/17204577