For each pound of blueberry cheesecake Abura produces,it gives up the opportunity to make 150 screwdrivers.Mayo can produce one pound of blueberry cheesecake for every 300 screwdrivers it produces.If specialization and trade were to occur between these two countries,which of the following is true with regard to opportunity costs in the two countries?
A) The opportunity cost of producing cheesecakes is lower in Abura than Mayo.
B) The opportunity cost of producing screwdrivers is lower in Abura than Mayo.
C) The opportunity cost of producing cheesecakes is identical in both countries.
D) The opportunity cost of producing screwdrivers is higher in Abura than Mayo.
E) In Mayo,the opportunity cost of producing one unit of screwdriver is one pound of cheesecake.
Correct Answer:
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