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 in Mexico of producing 10 units of machinery is _____ units of petroleum.

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 in Mexico of producing 10 units of machinery is _____ units of petroleum.

Quizplus · Accepted Answer

The opportunity cost is calculated by determining how much of one good must be given up to produce more of another. If Mexico gives up 30 units of petroleum to produce 10 units of machinery, the opportunity cost is 30 units of petroleum.

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