Suppose Nation A produces only two goods,apples and oranges.If Nation A produces only apples,it can make 12 apples per day.If Nation A produces only oranges,it can make 36 oranges per day.If the country has a constant production trade-off between apples and oranges,then the opportunity cost of one apple in Nation A is

Question

Quizplus · Accepted Answer

The opportunity cost of one apple in Nation A is the number of oranges foregone to produce one apple. To produce one apple, Nation A must give up producing 3 oranges (36/12=3), so the opportunity cost of one apple is 3 oranges. Therefore, the correct answer is B) 3 oranges.

Suppose Nation a Produces Only Two Goods,apples and Oranges