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 A is:

Question

Quizplus · Accepted Answer

The opportunity cost of one tomato in Country A is the number of bananas that could have been produced instead. Since a worker can produce 25 bananas or 5 tomatoes, the opportunity cost of one tomato is 25 bananas / 5 tomatoes = 5 bananas.

Suppose That a Worker in Country a Can Make Either