Figure 2-14 Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-14. What is the opportunity cost of producing 1 snow cone in Iceland?

Question

Figure 2-14  Figure 2-14 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-14. What is the opportunity cost of producing 1 snow cone in Iceland?

Quizplus · Accepted Answer

The opportunity cost of producing 1 snow cone in Iceland is 2/3 of a popsicle, as this is the amount of popsicles that must be foregone to produce one additional snow cone.

Figure 2-14 Figure 2-14 Shows the Production Possibilities Frontiers