Exhibit 21-4 Coffee and tea output (pounds per hour)

-As shown in Exhibit 21-4,the opportunity cost to Brazil of producing one pound of coffee is:

Question

Exhibit 21-4 Coffee and tea output (pounds per hour)
 
-As shown in Exhibit 21-4,the opportunity cost to Brazil of producing one pound of coffee is:

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the amount of tea that could be produced instead of one pound of coffee. If Brazil gives up 1/2 pound of tea to produce one pound of coffee, then the opportunity cost is 1/2 pound of tea.

Exhibit 21-4 Coffee and Tea Output (Pounds Per Hour)