The table given below represents the output per hour of cookies and chilies in Ohio and Iowa. Table 2.4
Refer to Table 2.4.If trade were to occur, what would be the least amount Ohio would be willing to accept for 1 cookie?

Question

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa. Table 2.4
 Refer to Table 2.4.If trade were to occur, what would be the least amount Ohio would be willing to accept for 1 cookie?

Quizplus · Accepted Answer

According to the opportunity cost analysis, Ohio's opportunity cost of producing 1 cookie is 4 chilies (since 1 cookie = 4 chilies in terms of production). Therefore, Ohio would be willing to accept at least 4 chilies for 1 cookie.

The Table Given Below Represents the Output Per Hour of Cookies