Figure 18.3

-Refer to Figure 18.3. The opportunity cost of producing pogo sticks in Livonia is

Name: Figure 18.3 -Refer to Figure 18.3. The opportunity cost of producing pogo sticks in Livonia is
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Question

Figure 18.3
 
-Refer to Figure 18.3. The opportunity cost of producing pogo sticks in Livonia is

Quizplus · Accepted Answer

The opportunity cost of producing one pogo stick in Livonia is 4/5 of a scooter (the slope of the production possibilities frontier). Therefore, Livonia should specialize in producing scooters and trade with other countries for pogo sticks, as they have a comparative advantage in scooter production.

Figure 18.3 -Refer to Figure 18.3. the Opportunity Cost of Producing Pogo