Use the following to answer questions:
-(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. The opportunity cost of _____ is _____ in the United States as (than) in Mexico.

Question

Use the following to answer questions: 
-(Table: Production Possibilities for Machinery and Petroleum) Look at the table Production Possibilities for Machinery and Petroleum. The opportunity cost of _____ is _____ in the United States as (than) in Mexico.

Quizplus · Accepted Answer

According to the table, Mexico has a comparative advantage in producing machinery, meaning that the opportunity cost of producing machinery in Mexico is lower than in the United States. Therefore, the opportunity cost of producing machinery is less in Mexico than in the United States.

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