The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1
-According to Table 20.1,the opportunity cost of producing wheat in the U.S.equals:

Question

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1 
-According to Table 20.1,the opportunity cost of producing wheat in the U.S.equals:

Quizplus · Accepted Answer

Opportunity cost is calculated by dividing the units of cloth given up (the alternative product) to produce one unit of wheat. In the U.S., to produce one unit of wheat, 1/3 unit of cloth is given up. Therefore, the opportunity cost of producing wheat in the U.S. equals one-third of a unit of cloth.

The Table Below Shows Units of Wheat and Cloth Produced