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If Apex chooses to produce 500 units of product B instead of 460 of them, why must it give up the production of 400 units of product A?

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User Sonal
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Answer:

Apex must give up the production of 400 units of product A because it has limited resources and production capacity. By choosing to produce 500 units of product B instead of 460, it means that it will have to allocate more of its resources and production capacity towards product B and less towards product A. If Apex does not have enough resources and capacity to produce both 500 units of product B and 400 units of product A, it will have to make a trade-off and reduce its production of product A in order to produce more of product B. This is a classic example of the concept of opportunity cost in economics, where the cost of an action is measured by the value of the best alternative that must be given up.

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User Dijksterhuis
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