If Germany used all its resources to produce bread, suppose it could produce 40 million loaves of bread. If it used all its resources to produce milk, it could produce 20 million gallons of milk. Based on this, Germany's opportunity cost of producing a _____ is _____.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one loaf of bread is the amount of milk that could have been produced instead. If 40 million loaves of bread can be produced instead of 20 million gallons of milk, then the opportunity cost of one loaf of bread is 1/2 a gallon of milk.

If Germany Used All Its Resources to Produce Bread, Suppose