Production Possibility Schedules for Two South Pacific Island Nations $$\begin{array} { c }
{ \text { Kiribati } } \quad\quad\quad\quad\quad\quad\quad{ \text { Tuvalu } } \
\begin{array} { | c | c | c | c | }
\hline \text { Mangues } & \text { Cocanuts } & \text { Mangues } & \text { Cacanuts } \
\hline 300 & 0 & 1,200 & 0 \
\hline 200 & 400 & 800 & 1,200 \
\hline 100 & 800 & 400 & 2,400 \
\hline 0 & 1,200 & 0 & 3,600 \
\hline
\end{array}\end{array}$$ In Kiribati, the opportunity cost of producing one mango (in terms of coconuts)is:
A)0.
B)1/4.
C)4.
D)400.

Question

Production Possibility Schedules for Two South Pacific Island Nations $$\begin{array} { c } 
{ \text { Kiribati } }  \quad\quad\quad\quad\quad\quad\quad{ \text { Tuvalu } } \
\begin{array} { | c | c | c | c | } 
\hline \text { Mangues } & \text { Cocanuts } & \text { Mangues } & \text { Cacanuts } \
\hline 300 & 0 & 1,200 & 0 \
\hline 200 & 400 & 800 & 1,200 \
\hline 100 & 800 & 400 & 2,400 \
\hline 0 & 1,200 & 0 & 3,600 \
\hline
\end{array}\end{array}$$ In Kiribati, the opportunity cost of producing one mango (in terms of coconuts)is:
A)0.
B)1/4.
C)4.
D)400.

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of a good is the amount of another good that must be given up to produce that unit. In Kiribati, moving from producing 200 mangos to 100 mangos (a decrease of 100 mangos) allows the production of 400 more coconuts (moving from 400 to 800 coconuts). Therefore, the opportunity cost of one mango is 400 coconuts/100 mangos = 4 coconuts per mango.

Production Possibility Schedules for Two South Pacific Island Nations In Kiribati, the Opportunity Cost of Producing One Mango (In