Figure 2-8 Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts.
-Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Question

Figure 2-8  Figure 2-8 shows the production possibilities frontiers for Costa Rica and Guatemala.Each country produces two goods,pineapples and coconuts.
-Refer to Figure 2-8.What is the opportunity cost of producing 1 ton of coconuts in Costa Rica?

Quizplus · Accepted Answer

The opportunity cost of producing 1 ton of coconuts in Costa Rica is the slope of its production possibilities frontier (PPF) for coconuts, which is 2/3 ton of pineapples. Based on this, the best choice(s) will depend on the specific situation and preferences of the countries. For example, if Costa Rica values coconuts more than pineapples, it may choose to produce closer to the PPF for coconuts, while if Guatemala values pineapples more than coconuts, it may choose to produce closer to the PPF for pineapples. However, without further information, it is not possible to make a definitive choice.

Figure 2-8 Figure 2-8 Shows the Production Possibilities Frontiers