Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The opportunity cost of one tomato in Country B is:
A) 108 bananas.
B) 18 bananas.
C) 6 bananas.
D) 3 bananas.

Question

Quizplus · Accepted Answer

The opportunity cost of one tomato in Country B is calculated by comparing the production of bananas and tomatoes. A worker in Country B can produce 18 bananas or 6 tomatoes. Therefore, the opportunity cost of one tomato is 18 bananas / 6 tomatoes = 3 bananas.

Suppose That a Worker in Country a Can Make Either