Figure 2-7

Figure 2-7 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-7.What is the opportunity cost of producing 1 ton of coconuts in Guatemala?

Question

Figure 2-7
  
Figure 2-7 shows the production possibilities frontiers for Costa Rica and Guatemala. Each country produces two goods, pineapples and coconuts.
-Refer to Figure 2-7.What is the opportunity cost of producing 1 ton of coconuts in Guatemala?

Quizplus · Accepted Answer

The opportunity cost of producing 1 ton of coconuts is the amount of pineapples that must be given up. If the production possibility frontier shows that 1 ton of coconuts costs 1/2 ton of pineapples, then that is the opportunity cost.

Figure 2-7 Figure 2-7 Shows the Production Possibilities Frontiers for Costa Rica