The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.
Table 2.4
$\begin{array}{|ccc|}
\hline &\text { Output per Hour }\
\text { Iowa } &\text { Cookies } & \text { Chilies } \
\hline \text { Ohid } & 6 & 24 \
\hline \text { Iowa } & 12 & 96\
\hline
\end{array}$
-Refer to Table 2.4. If trade were to occur, what would be the least amount Ohio would be willing to accept for 1 cookie?

Question

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.
Table 2.4
 $\begin{array}{|ccc|}
\hline &\text { Output per Hour }\
\text { Iowa } &\text { Cookies } & \text { Chilies } \
\hline  \text { Ohid } & 6 & 24 \
\hline \text { Iowa } & 12 & 96\
\hline 
\end{array}$
-Refer to Table 2.4. If trade were to occur, what would be the least amount Ohio would be willing to accept for 1 cookie?

Quizplus · Accepted Answer

To determine the least amount Ohio would be willing to accept for 1 cookie, we need to calculate the opportunity cost of producing 1 cookie in Ohio, which is the amount of chilies Ohio would have to give up to produce 1 cookie. The opportunity cost of 1 cookie in Ohio is 24/6 = 4 chilies. Therefore, Ohio would be willing to accept at least 4 chilies for 1 cookie.

The Table Given Below Represents the Output Per Hour of Cookies