Assume Country A and Country B each have the same amount of resources with which to produce wheat and corn and they produce no other goods.The values in Table 17.2 represent the maximum amount of each good that can be produced.
Table 17.1 - Full-employment output of goods
-Based on the information in Table 17.2,the opportunity cost of producing 1 bushel of wheat in Country A is:

Question

Assume Country A and Country B each have the same amount of resources with which to produce wheat and corn and they produce no other goods.The values in Table 17.2 represent the maximum amount of each good that can be produced.
Table 17.1 - Full-employment output of goods 
-Based on the information in Table 17.2,the opportunity cost of producing 1 bushel of wheat in Country A is:

Quizplus · Accepted Answer

The opportunity cost of producing 1 bushel of wheat in Country A is the amount of corn that must be given up to produce it. According to the table, Country A can produce 9 bushels of corn if it produces 1 bushel of wheat. Therefore, the opportunity cost of producing 1 bushel of wheat in Country A is 9/1=3 bushels of corn. Similarly, the opportunity cost of producing 1 bushel of wheat in Country B is 6/2=3 bushels of corn. Since the opportunity cost in both countries is the same, the two countries have the same comparative advantage in producing each good. However, since Country B can produce more of both goods, it has an absolute advantage in production.

Assume Country a and Country B Each Have the Same