Exhibit 21-3 Potatoes and wheat output (tons per day) In Exhibit 21-3, Ireland's opportunity cost of producing one unit of wheat is:

Question

Exhibit 21-3  Potatoes and wheat output (tons per day)  In Exhibit 21-3, Ireland's opportunity cost of producing one unit of wheat is:

Quizplus · Accepted Answer

According to the exhibit, Ireland can produce 2 tons of potatoes or 1/2 ton of wheat in a day with the given resources. To find the opportunity cost, we need to calculate the amount of one product that Ireland has to give up to produce an additional unit of the other product. To produce one more unit of wheat, Ireland will have to give up the resources that could have produced 2 tons of potatoes (since the exhibit shows that Ireland can produce 2 tons of potatoes and 1/2 ton of wheat with the given resources). Therefore, the opportunity cost of producing one unit of wheat is 2 tons of potatoes. However, this answer is not given in the options. The closest option is B, which states that the opportunity cost of producing one unit of wheat is 3 tons of potatoes. This option is incorrect as it overstates the opportunity cost.

Exhibit 21-3 Potatoes and Wheat Output (Tons Per Day) in Exhibit