Daily Output of Scotland and Poland
Table 18.1
-Refer to Table 18.1.The opportunity cost of a bagpipe in Scotland is:

Question

Daily Output of Scotland and Poland
  Table 18.1
-Refer to Table 18.1.The opportunity cost of a bagpipe in Scotland is:

Quizplus · Accepted Answer

According to the table, to produce one bagpipe, Scotland must give up the opportunity to produce either 1/2 an accordion or 1/6 of a bicycle. The opportunity cost of a bagpipe in Scotland is therefore 1/2 an accordion or 1/6 of a bicycle. This means that Scotland is relatively more efficient at producing bagpipes than accordions or bicycles. Therefore, it is most beneficial for Scotland to produce bagpipes and trade with other countries for accordions and bicycles, which they can obtain at a lower opportunity cost.