Refer to the information provided in Table 19.1 below to answer the questions that follow.
Table 19.1

-Refer to Table 19.1.The opportunity cost of producing a bushel of oranges in Mexico is

Question

Refer to the information provided in Table 19.1 below to answer the questions that follow.
Table 19.1
 
-Refer to Table 19.1.The opportunity cost of producing a bushel of oranges in Mexico is

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of oranges in Mexico is 2 coffee in Guatemala, while the opportunity cost of producing a bushel of oranges in Guatemala is 4 coffee in Guatemala. Therefore, Mexico has a lower opportunity cost for producing oranges and should produce more oranges. Guatemala has a lower opportunity cost for producing coffee and should produce more coffee. So, the best choice would be for Mexico to specialize in producing oranges and for Guatemala to specialize in producing coffee, leading to mutually beneficial trade between the two countries.

Refer to the Information Provided in Table 19