Suppose that a worker in Country A can produce either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can produce either 18 bananas or 6 tomatoes each year. Country B has 400 workers. For a worker in Country B, the trade-off to producing one tomato is:
A) 2 bananas.
B) 3 bananas.
C) 4 bananas.
D) 5 bananas.

Question

Quizplus · Accepted Answer

In Country B, a worker can produce either 18 bananas or 6 tomatoes each year. This means that the opportunity cost of producing one tomato is giving up the production of 3 bananas (18/6 = 3). Therefore, the trade-off to producing one tomato for a worker in Country B is 3 bananas.

Suppose That a Worker in Country a Can Produce Either