Use the following to answer questions:
-(Figure: Comparative Advantage)Use Figure: Comparative Advantage.The opportunity cost of producing one box of oranges for Eastland is _____ box(es)of peaches.
A) 1
B) 0.25
C) 4
D) 10

Question

Use the following to answer questions: 
-(Figure: Comparative Advantage)Use Figure: Comparative Advantage.The opportunity cost of producing one box of oranges for Eastland is _____ box(es)of peaches.
A) 1 
B) 0.25 
C) 4 
D) 10

Quizplus · Accepted Answer

Eastland has an opportunity cost of producing one box of oranges at four boxes of peaches. In contrast, Westland can produce one box of oranges at the cost of only two boxes of peaches. Thus, Eastland has a comparative disadvantage in producing oranges. Therefore, it is more efficient for Eastland to produce peaches and trade with Westland for oranges.

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