Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.On the other hand,a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.The opportunity cost for the United States is: A) 5 apples for each pair of shoes. B) 5 pairs of shoes for each apple. C) ¹/₅ apple for each pair of shoes. D) 1 pair of shoes for every 2 apples.

Question

Quizplus · Accepted Answer

The opportunity cost for the United States of producing one pair of shoes is the number of apples that could have been produced instead. Since an American worker can produce 100 apples or 20 pairs of shoes, the opportunity cost of one pair of shoes is 100 apples / 20 pairs of shoes = 5 apples per pair of shoes.

Suppose an American Worker Can Make 20 Pairs of Shoes