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 210 units of petroleum is _______ units of machinery.

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 210 units of petroleum is _______ units of machinery.

Quizplus · Accepted Answer

Looking at the exhibit, producing 210 units of petroleum in Mexico would require forgoing 70 units of machinery. This means that Mexico would have to give up 70 units of machinery in order to produce 210 units of petroleum. Therefore, the opportunity cost of producing 210 units of petroleum in Mexico is 70 units of machinery.

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