The United States must give up the production of 500 bicycles to produce 20 additional tractors.The opportunity cost of producing 5 tractors is _____ bicycles.

Question

Quizplus · Accepted Answer

The opportunity cost of producing 20 tractors is 500 bicycles, so the opportunity cost of producing 1 tractor is 500/20 = 25 bicycles. Therefore, the opportunity cost of producing 5 tractors is 5 * 25 = 125 bicycles.

The United States Must Give Up the Production of 500