-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in Argentina is
A)0.33 pound of beef.
B)0.5 pound of beef.
C)2 pounds of beef.
D)3 pounds of beef.

Question

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in Argentina is
A)0.33 pound of beef. 
B)0.5 pound of beef. 
C)2 pounds of beef. 
D)3 pounds of beef.

Quizplus · Accepted Answer

The opportunity cost of producing a gallon of wine in Argentina is 0.33 pound of beef. This is because, according to the table, Argentina can produce 3 gallons of wine or 1 pound of beef with the same resources. Therefore, the opportunity cost of producing a gallon of wine is 1/3 pound of beef, or 0.33 pound of beef.

-Use the Above Table