In a single year, Germany can raise 100 tons of wheat or produce 1,000 boxes of daisies. In the same growing season, France can raise 50 tons of wheat or produce 750 boxes of daisies. In autarky, the opportunity cost of wheat:

Question

Quizplus · Accepted Answer

In Germany, the opportunity cost of producing 1 ton of wheat is 10 boxes of daisies (1,000 boxes / 100 tons = 10 boxes per ton). In France, the opportunity cost of producing 1 ton of wheat is 15 boxes of daisies (750 boxes / 50 tons = 15 boxes per ton). Therefore, the opportunity cost of wheat is lower in Germany than in France.

In a Single Year, Germany Can Raise 100 Tons of Wheat