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 Guatemala?

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 Guatemala?

Quizplus · Accepted Answer

According to the production possibilities frontier for Guatemala, for every 1 ton of pineapples produced, Guatemala has to give up producing 2 tons of coconuts. This means the opportunity cost of producing 1 ton of pineapples in Guatemala is 2 tons of coconuts. Therefore, the correct answer is C, 2 tons of coconuts.

There is no other best choice as the question only asks for the opportunity cost of producing 1 ton of pineapples in Guatemala.

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