Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below.
-In Figure 17.1 what is the opportunity cost of a DVD player in Japan?

Question

Suppose the United States and Japan each produce only two goods and have the production possibilities shown in Figure 17.1.Without trade,Japan produces at point A and the United States produces at point B.Use the figure to answer the question(s)below. 
-In Figure 17.1 what is the opportunity cost of a DVD player in Japan?

Quizplus · Accepted Answer

The opportunity cost of a DVD player in Japan is determined by how many motorcycles could be produced with the resources used to produce one DVD player. If the production possibility frontier or a similar table indicates that Japan sacrifices 2 motorcycles to produce an additional DVD player, then the opportunity cost is 2 motorcycles per DVD player.

Suppose the United States and Japan Each Produce Only Two