Use the following to answer questions :
Scenario: The Production of Wheat and Toys The table describes the production of two goods, wheat and toys, in country A and country B. Each country has a linear production possibility frontier with respect to its production of the two goods. The numbers in each column represent the total number of units each country could produce if it used all of its resources to produce the good.
-(Scenario: The Production of Wheat and Toys) Look at the scenario Production of Wheat and Toys. The opportunity cost of producing a unit of toys in country A is _____ unit(s) of wheat.

Question

Use the following to answer questions :
Scenario: The Production of Wheat and Toys  The table describes the production of two goods, wheat and toys, in country A and country B. Each country has a linear production possibility frontier with respect to its production of the two goods. The numbers in each column represent the total number of units each country could produce if it used all of its resources to produce the good.
-(Scenario: The Production of Wheat and Toys) Look at the scenario Production of Wheat and Toys. The opportunity cost of producing a unit of toys in country A is _____ unit(s) of wheat.

Quizplus · Accepted Answer

The opportunity cost of producing a unit of toys in country A is 0.5 units of wheat, meaning that for every toy produced, the country forgoes the production of 0.5 units of wheat.

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