Below are the production possibilities (without trade)and the trading possibilities (with free trade)for Canada.

-Refer to the graph above to answer this question.Assuming no trade,what is the opportunity cost of 1 more railcar?

Question

Below are the production possibilities (without trade)and the trading possibilities (with free trade)for Canada.
 
-Refer to the graph above to answer this question.Assuming no trade,what is the opportunity cost of 1 more railcar?

Quizplus · Accepted Answer

The opportunity cost of producing one more railcar is the amount of aircraft that must be given up. The graph likely shows a production possibilities frontier (PPF) where the opportunity cost can be calculated by the slope. If the opportunity cost is 0.0167 aircraft per railcar, it means for each additional railcar, 0.0167 aircraft are forgone.

Below Are the Production Possibilities (Without Trade)and the Trading Possibilities