Exhibit 28-1 Alpha can produce either 18 tons of oranges or 9 tons of apples in a year,while Omega can produce either 16 tons of oranges or 4 tons of apples.
Refer to Exhibit 28-1.The opportunity costs of producing 1 ton of apples for Alpha and Omega,respectively,are:

Question

Quizplus · Accepted Answer

To calculate the opportunity cost of 1 ton of apples, we need to divide the amount of oranges that can be produced by the amount of apples that could have been produced instead. For Alpha, the opportunity cost of 1 ton of apples is 18/9 = 2 tons of oranges. For Omega, the opportunity cost of 1 ton of apples is 16/4 = 4 tons of oranges. Therefore, the best choice would be to produce apples with Alpha since their opportunity cost is lower.

Exhibit 28-1 Alpha Can Produce Either 18 Tons of Oranges