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Use the Basis of the Following Information

Question 123

Multiple Choice

Use the basis of the following information.
Country E can produce 10 tons of coal or 2 tons of wheat with one unit of resources.
Country F can produce 10 tons of coal or 5 tons of wheat with one unit of resources.
-The opportunity cost of producing 2 tons of wheat in Country E is:


A) zero, since Country E produces both wheat and coal.
B) the same as the opportunity cost of producing 5 tons of wheat in Country F.
C) 2.5 times as large as the opportunity cost of producing 5 tons of wheat in Country F.
D) only 40 percent as large as the opportunity cost of producing 5 tons of wheat in Country F.

Correct Answer:

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