Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1
-Refer to Table 18.1. The opportunity cost of producing a bushel of oranges in Mexico is
A) twice as much as that in Guatemala.
B) half as much as that in Guatemala.
C) the same as that in Guatemala.
D) four times as much as that in Guatemala.

Question

Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1 
-Refer to Table 18.1. The opportunity cost of producing a bushel of oranges in Mexico is
A) twice as much as that in Guatemala. 
B) half as much as that in Guatemala. 
C) the same as that in Guatemala. 
D) four times as much as that in Guatemala.

Quizplus · Accepted Answer

The opportunity cost of producing a bushel of oranges in Mexico is 1/2 bushel of coffee, whereas in Guatemala it is 1 bushel of coffee. Therefore, the opportunity cost of producing a bushel of oranges in Mexico is half as much as that in Guatemala.

Refer to the Information Provided in Table 18