Figure 2.14 Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts.
Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala.
Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis.
-Refer to Figure 2.14.What is the opportunity cost of producing 1 tonne of coconuts in Guatemala?

Question

Figure 2.14   Figure 2.14 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods, pineapples and coconuts.
Alt text for Figure 2.14: In figure 2.14, 2 graphs show the production possibilities frontiers for Costa Rica and Guatemala.
Long description for Figure 2.14: The graph on the left represents Costa Rica.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 100 on the y-axis to point 150 on the x-axis.The graph on the right represents Guatemala.The x-axis is labelled, coconuts, and is marked from 20 to 200 in increments of 20.The y-axis is labelled, pineapples, and is marked from 20 to 200 in increments of 20.A slanted line is drawn from point 90 on the y-axis to point 180 on the x-axis.
-Refer to Figure 2.14.What is the opportunity cost of producing 1 tonne of coconuts in Guatemala?

Quizplus · Accepted Answer

The opportunity cost of producing 1 tonne of coconuts in Guatemala is 1/2 of a tonne of pineapples. This is because the production possibilities curve shows that Guatemala can produce either 1 tonne of coconuts or 2 tonnes of pineapples. Therefore, the opportunity cost of producing 1 tonne of coconuts is 2 tonnes of pineapples - 1 tonne of coconuts = 1 tonne of pineapples.

Figure 214 Figure 2