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 of opportunity costs in the two countries?

Question

Quizplus · Accepted Answer

Abura gives up 150 screwdrivers for each pound of cheesecake, while Mayo gives up 300 screwdrivers. Therefore, the opportunity cost of producing cheesecakes is lower in Abura.

For Each Pound of Blueberry Cheesecake Abura Produces, It Gives