Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. What are their respective opportunity costs of one pair of gloves?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one pair of gloves for the American worker is 300 radishes divided by 50 pairs of gloves, which equals 6 radishes per pair of gloves. For the Bangladeshi worker, it's 200 radishes divided by 100 pairs of gloves, resulting in 2 radishes per pair of gloves.

Suppose an American Worker Can Make 50 Pairs of Gloves