Suppose that the U.S. can produce either 10 tons of corn or 10 tons of steel using 1 resource unit, and Japan can produce either 2 tons of corn or 10 tons of steel using 1 resource unit. The opportunity cost of producing 1 ton of corn in the U.S. and Japan are ______ and ______, respectively.

Question

Quizplus · Accepted Answer

In the U.S., the opportunity cost of producing 1 ton of corn is 1 ton of steel, because instead of producing 1 ton of corn, the U.S. could produce 1 ton of steel with the same resources. In Japan, the opportunity cost of producing 1 ton of corn is 5 tons of steel, because instead of producing 2 tons of corn, Japan could produce 10 tons of steel with the same resources, making the cost for 1 ton of corn half of that, which is 5 tons of steel.

Suppose That the U