An economy produces two goods: bio-ethanol (measured in thousand kilolitres) and electric buses, using all its available factors of production. The table below shows the maximum combinations of the two goods that can be produced:
CombinationBio-ethanol (thousand kilolitres)Electric busesP0160Q120140R220110S30070T3500 \begin{array}{|c|c|c|} \hline \text{Combination} & \text{Bio-ethanol (thousand kilolitres)} & \text{Electric buses} \\ \hline \text{P} & 0 & 160 \\ \hline \text{Q} & 120 & 140 \\ \hline \text{R} & 220 & 110 \\ \hline \text{S} & 300 & 70 \\ \hline \text{T} & 350 & 0 \\ \hline \end{array} CombinationPQRSTBio-ethanol (thousand kilolitres)0120220300350Electric buses160140110700What is the opportunity cost of producing one additional electric bus when the economy moves from combination S to combination R?
0.5 thousand kilolitres of bio-ethanol0.5\text{ thousand kilolitres of bio-ethanol}0.5 thousand kilolitres of bio-ethanol
2.0 thousand kilolitres of bio-ethanol2.0\text{ thousand kilolitres of bio-ethanol}2.0 thousand kilolitres of bio-ethanol
40 electric buses40\text{ electric buses}40 electric buses
80 thousand kilolitres of bio-ethanol80\text{ thousand kilolitres of bio-ethanol}80 thousand kilolitres of bio-ethanol
