Use the following to answer questions :
-(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. In Mexico the opportunity cost of producing 150,000 barrels of crude oil is _____ tractors.

Question

Use the following to answer questions : 
-(Table: The Production Possibilities for Tractors and Crude Oil) Look at the table The Production Possibilities for Tractors and Crude Oil. In Mexico the opportunity cost of producing 150,000 barrels of crude oil is _____ tractors.

Quizplus · Accepted Answer

The opportunity cost of producing 150,000 barrels of crude oil is 50 tractors. This is because, as the table shows, Mexico can produce either 200,000 barrels of crude oil and 0 tractors, or 150,000 barrels of crude oil and 50 tractors. Therefore, the opportunity cost of producing 150,000 barrels of crude oil is 50 tractors.

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