Figure 2-13 Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Question

Figure 2-13  Figure 2-13 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the loss of pineapples when producing coconuts. If Costa Rica gives up 2/3 of a ton of pineapples to produce 1 ton of coconuts, then the opportunity cost is 2/3 of a ton of pineapples.

Figure 2-13 Figure 2-13 Shows the Production Possibilities Frontiers