Suppose that in Japan one worker can produce either four cars or 5 tons of grain per year. What is the opportunity cost of producing one car in Japan?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one car in Japan is the amount of grain that could have been produced instead. Since one worker can produce either 4 cars or 5 tons of grain per year, producing one car means giving up the production of 5/4 = 1.25 tons of grain.

Suppose That in Japan One Worker Can Produce Either Four