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 rye in Canada?

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 rye in Canada?

Quizplus · Accepted Answer

The opportunity cost of 1 bushel of rye in Canada is 0.67 bushels of beans. This is because 1 bushel of rye can be sold for $1.50, and 1 bushel of beans can be sold for $2.25. Therefore, the opportunity cost of 1 bushel of rye is 1.50/2.25 = 0.67 bushels of beans.

Below Is Some Hypothetical Data for the Countries of Canada