Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Latalia's production possibilities }$
$\begin{array}{c|c|c|c|c|c}
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Pork (Tons) } & 4 & 3 & 2 & 1 & 0 \
\hline \text { Beans (Tons) } & 0 & 5 & 10 & 15 & 20
\end{array}$ $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Trombonia's production }$
$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { possibilities }$
$\begin{array}{c|c|c|c|c|c}
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Pork (Tons) } & 8 & 6 & 4 & 2 & 0 \
\hline \text { Beans (Tons) } & 0 & 6 & 12 & 18 & 24 \
\hline
\end{array}$ In Latalia the domestic real cost of 1 ton of pork

Question

Answer the question on the basis of the accompanying production possibilities tables for two countries, Latalia and Trombonia. $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Latalia's production possibilities }$
$\begin{array}{c|c|c|c|c|c} 
& \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Pork (Tons) } & 4 & 3 & 2 & 1 & 0 \
\hline \text { Beans (Tons) } & 0 & 5 & 10 & 15 & 20
\end{array}$ $ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { Trombonia's production }$
$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$ \quad$$\text { possibilities }$
$\begin{array}{c|c|c|c|c|c}
\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \
\hline \text { Pork (Tons) } & 8 & 6 & 4 & 2 & 0 \
\hline \text { Beans (Tons) } & 0 & 6 & 12 & 18 & 24 \
\hline
\end{array}$ In Latalia the domestic real cost of 1 ton of pork

Quizplus · Accepted Answer

The domestic real cost of a good in terms of the other good is calculated by finding the opportunity cost of producing one unit of the good. In this case, to produce one additional ton of pork, Latalia has to give up producing 5 tons of beans (going from point C to point D in the table). Therefore, the domestic real cost of 1 ton of pork in terms of beans is 5 tons.

Answer the Question on the Basis of the Accompanying Production \quad

Answer the Question on the Basis of the Accompanying Production $\quad$