Use the following to answer question(s): Production Possibilities for Machinery and Petroleum

-(Exhibit: Production Possibilities for Machinery and Petroleum) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of machinery each country would have to forgo in order to produce the additional petroleum indicated.Based on the information in the exhibit, it is true that:

Question

Use the following to answer question(s): Production Possibilities for Machinery and Petroleum
 
-(Exhibit: Production Possibilities for Machinery and Petroleum) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of machinery each country would have to forgo in order to produce the additional petroleum indicated.Based on the information in the exhibit, it is true that:

Quizplus · Accepted Answer

According to the exhibit, in the United States, producing one additional unit of petroleum would require forgoing the production of 2 units of machinery. In Mexico, producing one additional unit of petroleum would require forgoing the production of only 1 unit of machinery. This means that the opportunity cost of producing petroleum is lower in Mexico than in the United States, making B the correct answer.

Use the Following to Answer Question(s): Production Possibilities for Machinery