Use the following to answer question:

-(Figure: Comparative Advantage)Use Figure: Comparative Advantage.The opportunity cost of producing 1 box of peaches for Westland is _____ box(es)of oranges.
A)1
B)0.25
C)4
D)10

Question

Use the following to answer question:

-(Figure: Comparative Advantage)Use Figure: Comparative Advantage.The opportunity cost of producing 1 box of peaches for Westland is _____ box(es)of oranges.
A)1 
B)0.25 
C)4 
D)10

Quizplus · Accepted Answer

According to the graph, the opportunity cost of producing 1 box of peaches for Westland is 0.25 box(es) of oranges, which means that Westland has a comparative advantage in producing peaches as their opportunity cost of producing peaches is lower than the opportunity cost of producing peaches for Eastland. Therefore, Westland should produce peaches while Eastland should produce oranges to maximize their combined output.

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