Exhibit 19-1
-Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts. What is the opportunity cost of a coconut in Beta?

Question

Exhibit 19-1 
-Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts. What is the opportunity cost of a coconut in Beta?

Quizplus · Accepted Answer

According to the graph, Beta has a production possibilities frontier where one coconut is produced for every two fish given up. Therefore, the opportunity cost of a coconut in Beta is 2 fish.

The best choice(s) cannot be determined from the information provided as it depends on the preferences and needs of the countries.

Exhibit 19-1 -Exhibit 19-1 Shows the Production Possibilities Frontiers for the Countries