Table 3-6

-Refer to Table 3-5.What is the opportunity cost of one unit of bread in England?
A)4 cheeses
B)2 cheeses
C)1 cheese
D)1/2 cheese

Question

Table 3-6
 
-Refer to Table 3-5.What is the opportunity cost of one unit of bread in England?
A)4 cheeses 
B)2 cheeses 
C)1 cheese 
D)1/2 cheese

Quizplus · Accepted Answer

The opportunity cost of one unit of bread in England is 2 cheeses. Therefore, England should produce cheeses as it has a lower opportunity cost for producing them. France should produce bread as it has a lower opportunity cost for producing it. Trading can occur where both countries can benefit by specializing in producing what they have a comparative advantage in and then trading with each other.

Table 3-6 -Refer to Table 3-5.What Is the Opportunity Cost of One