The steel required for the construction of a new car-assembly plant in a fully employed economy is obtained by increasing the output of the domestic steel industry.
What is the opportunity cost of producing the steel?
the alternative benefits forgone by diverting additional resources to steel manufacture
2 )
the alternative benefits forgone by increasing the capacity of the car industry
3 )
the alternative benefits that would have been obtained by putting the steel to other uses
4 )
zero, since there is no reduction in the steel supplied to other steel users
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