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 pineapples 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 pineapples in Costa Rica?

Quizplus · Accepted Answer

The opportunity cost of producing something is what you give up to produce that item instead of producing another good. In this case, for Costa Rica to produce 1 ton of pineapples, it gives up the opportunity to produce 1 1/2 tons of coconuts, as indicated by the trade-off on the production possibility frontier in Figure 2-8.

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