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 105 units of petroleum is _____ units of machinery.

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 105 units of petroleum is _____ units of machinery.

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 producing 105 units of petroleum means giving up 35 units of machinery, then the opportunity cost is 35 units of machinery.

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