Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. The opportunity cost for the United States is:

Question

Quizplus · Accepted Answer

The opportunity cost of making one pair of shoes in the United States is the amount of apples that could have been produced instead. Since the American worker can produce 20 pairs of shoes or 100 apples per day, the opportunity cost of producing one pair of shoes is 100 apples / 20 pairs of shoes = 5 apples for each pair of shoes.

Suppose an American Worker Can Make 20 Pairs of Shoes