Table 3-6

-Refer to Table 3-6. What is the opportunity cost of 1 unit of cheese in England?
A)4 breads.
B)2 breads.
C)1/2 bread.
D)1/4 bread.

Question

Table 3-6
 
-Refer to Table 3-6. What is the opportunity cost of 1 unit of cheese in England?
A)4 breads. 
B)2 breads. 
C)1/2 bread. 
D)1/4 bread.

Quizplus · Accepted Answer

The opportunity cost of 1 unit of cheese in England is 1/2 bread. Therefore, England has a comparative advantage in producing cheese and should focus on producing cheese while importing bread. Portugal, on the other hand, has a comparative advantage in producing bread and should focus on producing bread while importing cheese. This will lead to a more efficient allocation of resources and maximum combined output of both goods.

Table 3-6 -Refer to Table 3-6. What Is the Opportunity Cost of the Opportunity