Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.What is the opportunity cost of 1 bushel of beans in Mexico?

Question

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
  Mexico's Production Possibilities
(Output in millions of bushels per month)
  Output Before Trade
(Output in millions of bushels per month)
 
-Refer to the information above to answer this question.What is the opportunity cost of 1 bushel of beans in Mexico?

Quizplus · Accepted Answer

To calculate opportunity cost, we need to look at the trade-off between producing two goods. In Mexico, 1 bushel of beans can be traded for 0.5 bushels of rye (moving from point A to point B on the production possibilities curve). Therefore, the opportunity cost of 1 bushel of beans in Mexico is 0.5 bushels of rye.

Answer: It depends on the specific scenario and preferences. Without additional information on prices, demand, and other factors, it is impossible to determine the best choice.

Below Is Some Hypothetical Data for the Countries of Canada