Use the following to answer question:
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.In Mexico,the opportunity cost of producing 40 tractors is _____ barrels of crude oil.

Question

Use the following to answer question: 
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.In Mexico,the opportunity cost of producing 40 tractors is _____ barrels of crude oil.

Quizplus · Accepted Answer

To produce 40 tractors, Mexico must give up producing 120,000 barrels of crude oil (60,000 for 20 tractors + 30,000 for another 20 tractors). Therefore, the opportunity cost of producing 40 tractors is 120,000 barrels of crude oil.

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