Suppose the opportunity cost of producing wheat is higher in the United States than in Brazil. This means that the United States should import wheat from Brazil.

Question

Quizplus · Accepted Answer

The opportunity cost of producing a good is the value of the next best alternative foregone. If the opportunity cost of producing wheat is higher in the United States than in Brazil, it means that the United States has to give up more resources to produce a unit of wheat than Brazil does. Therefore, it is more efficient for the United States to import wheat from Brazil than to produce it domestically.

Suppose the Opportunity Cost of Producing Wheat Is Higher in the United