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.The opportunity cost in Mexico of producing 90 units of machinery is _______ units of petroleum.

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.The opportunity cost in Mexico of producing 90 units of machinery is _______ units of petroleum.

Quizplus · Accepted Answer

The opportunity cost of producing 90 units of machinery in Mexico is 270 units of petroleum, as indicated by the constant cost ratio in the production possibilities information provided. This means for every unit of machinery produced, Mexico would have to forgo 3 units of petroleum, making the total opportunity cost for 90 units of machinery 270 units of petroleum.

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