Alternate Outputs from One Day's Labor Input:
USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles.
The opportunity cost of one bushel of wheat in India is:

Question

Quizplus · Accepted Answer

In India, the opportunity cost of producing one bushel of wheat is the amount of textiles that could have been produced with the resources used to produce that bushel of wheat. Since India can produce 3 bushels of wheat or 12 yards of textiles in a day, producing one bushel of wheat means forgoing the production of 4 yards of textiles (12 yards of textiles / 3 bushels of wheat = 4 yards of textiles per bushel of wheat).