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Suppose That the Productivity Per Worker in the Apple Juice \quad

Question 153

Essay

Suppose that the productivity per worker in the apple juice and grape juice industries of Westlake and Eastlake are as follows: \quad \quad \quad \quad \quad \quad \quad  Number of Litres per day\underline{\text { Number of Litres per day} }
 Apple juice  Grape juice Westlake 5 or 1 Eastlake 1 or 3\begin{array}{lclc} & \underline{\text { Apple juice }} & &\underline{ \text { Grape juice} } \\\text { Westlake } & 5 & \text { or } & 1 \\\text { Eastlake } & 1 & \text { or } & 3\end{array}
a) What is the opportunity cost of 1 litre of apple juice for Westlake? For Eastlake?
b) What is the opportunity cost of 1 litre of grape juice for Westlake? For Eastlake?

Correct Answer:

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a) Westlake: 0.2 litre of grap...

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