Use the following to answer question(s): The Production of Tires and Radios

-(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated.Further assume that the only input is labor and that it remains fully employed.The cost to country Y of producing an additional radio is _______ tire(s).

Question

Use the following to answer question(s): The Production of Tires and Radios
 
-(Exhibit: The Production of Tires and Radios) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of tires each country would have to forgo in order to produce the additional radios indicated.Further assume that the only input is labor and that it remains fully employed.The cost to country Y of producing an additional radio is _______ tire(s).

Quizplus · Accepted Answer

The cost to country Y of producing an additional radio is 3 tires, as indicated by the opportunity cost of producing radios instead of tires in country Y.

Use the Following to Answer Question(s): the Production of Tires