-Huey and Steve can grow potatoes or tomatoes.The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week.Based on the table,Huey's opportunity cost of producing one pound of tomatoes is
A) 1.5 pounds of potatoes.
B) 0.66 pound of potatoes.
C) 0, because he has an absolute advantage in it.
D) 0, because he has a comparative advantage in it.
E) 1.0 pound of potatoes.

Question

-Huey and Steve can grow potatoes or tomatoes.The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week.Based on the table,Huey's opportunity cost of producing one pound of tomatoes is
A) 1.5 pounds of potatoes. 
B) 0.66 pound of potatoes. 
C) 0, because he has an absolute advantage in it. 
D) 0, because he has a comparative advantage in it. 
E) 1.0 pound of potatoes.

Quizplus · Accepted Answer

Huey's opportunity cost of producing one pound of tomatoes is calculated by dividing the amount of potatoes he can produce by the amount of tomatoes he can produce. If Huey can produce 3 pounds of potatoes or 2 pounds of tomatoes in a week, then the opportunity cost of producing one pound of tomatoes is 1.5 pounds of potatoes (3 pounds of potatoes / 2 pounds of tomatoes = 1.5 pounds of potatoes per pound of tomatoes).

-Huey and Steve Can Grow Potatoes or Tomatoes