Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5 $\quad $$\quad $$\quad $$\quad $$\text { India} $$\quad $$\quad $$\quad $$\quad $ $\quad $$\text { Vietnam } $
$\begin{array} { c c c c }
\text { Cashews } & \text { Tea } & \text { Cashews } & \text { Tea } \
\hline 0 & 600 & 0 & 600 \
20 & 500 & 20 & 450 \
40 & 400 & 40 & 300 \
60 & 300 & 60 & 150 \
80 & 200 & 80 & 0 \
100 & 100 & - & - \
120 & 0 & - & - \
\hline
\end{array}$
-Refer to Table 20.5. The most that Vietnam will be willing to pay for a bushel of cashews is
A) 5 lbs. of tea.
B) 6.25 lbs. of tea.
C) 7.5 lbs. of tea.
D) 10 lbs. of tea.

Question

Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5 $\quad $$\quad $$\quad $$\quad $$\text { India} $$\quad $$\quad $$\quad $$\quad $ $\quad $$\text { Vietnam } $ 
$\begin{array} { c c c c } 
\text { Cashews } & \text { Tea } & \text { Cashews } & \text { Tea } \
\hline 0 & 600 & 0 & 600 \
20 & 500 & 20 & 450 \
40 & 400 & 40 & 300 \
60 & 300 & 60 & 150 \
80 & 200 & 80 & 0 \
100 & 100 & - & - \
120 & 0 & - & - \
\hline
\end{array}$
-Refer to Table 20.5. The most that Vietnam will be willing to pay for a bushel of cashews is
A) 5 lbs. of tea.
B) 6.25 lbs. of tea.
C) 7.5 lbs. of tea.
D) 10 lbs. of tea.

Quizplus · Accepted Answer

The most Vietnam will be willing to pay for a bushel of cashews is determined by the opportunity cost of producing one more bushel of cashews instead of tea. From the table, moving from 0 to 20 bushels of cashews, Vietnam gives up 150 lbs. of tea (600 - 450 = 150). Therefore, for 20 bushels, the cost is 150 lbs. of tea, which means the cost per bushel is 150 lbs. / 20 bushels = 7.5 lbs. of tea per bushel.

Refer to the Information Provided in Table 20 \quad \quad

Refer to the Information Provided in Table 20 $\quad$ $\quad$