Exhibit 15-4 Coffee and tea output (pounds per hour)

As shown in Exhibit 15-4, the opportunity cost to Brazil of producing one pound of coffee is:

Question

Exhibit 15-4 Coffee and tea output (pounds per hour)

As shown in Exhibit 15-4, the opportunity cost to Brazil of producing one pound of coffee is:

Quizplus · Accepted Answer

The opportunity cost of producing one pound of coffee for Brazil is the amount of tea it could have produced with the same resources. The table shows that Brazil can produce either 2 pounds of tea or 1 pound of coffee with the same resources. Therefore, the opportunity cost of producing one pound of coffee is 2 pounds of tea divided by 1 pound of coffee, which equals 1/2 pound of tea.

Exhibit 15-4 Coffee and Tea Output (Pounds Per Hour)