For each watch Switzerland produces,it gives up the opportunity to produce 50 pounds of cheese.Germany can produce one watch at a cost of 100 pounds of cheese.Which of the following is true?
A)The opportunity cost of producing watches is lower in Switzerland.
B)The opportunity cost of producing cheese is lower in Switzerland.
C)The opportunity cost of producing watches is the same in both countries.
D)It is impossible to compare costs because the two countries are not the same size.
E)In Germany,the cost of a pound of cheese is one watch.

Question

Quizplus · Accepted Answer

Switzerland has a lower opportunity cost for producing watches (50 pounds of cheese) compared to Germany (100 pounds of cheese).

For Each Watch Switzerland Produces,it Gives Up the Opportunity to Produce