Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.What is the opportunity cost of 1 bushel of beans in Canada?

Question

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
  Mexico's Production Possibilities
(Output in millions of bushels per month)
  Output Before Trade
(Output in millions of bushels per month)
 
-Refer to the information above to answer this question.What is the opportunity cost of 1 bushel of beans in Canada?

Quizplus · Accepted Answer

The opportunity cost of producing 1 bushel of beans in Canada is the amount of rye that could have been produced instead. If the information suggests that Canada can produce beans and rye at a certain rate, the opportunity cost is calculated by comparing the production rates of beans to rye. Without the specific data provided in the question, the general approach to find the opportunity cost is to see how much of one good needs to be given up to produce an additional unit of another good. In this case, if the correct answer is B) 1.5 bushels of rye, it means that for every bushel of beans produced, Canada foregoes the production of 1.5 bushels of rye.

Below Is Some Hypothetical Data for the Countries of Canada