If Canada specializes in the production of wine we can produce 10,000 bottles per month. If Canada specializes in the production of wheat we can produce 200,000 bushels per month. The opportunity cost of a bottle of wine in Canada is

Question

Quizplus · Accepted Answer

To find the opportunity cost of a bottle of wine, we need to compare the production of wine to the production of wheat. The ratio of wine to wheat production is 1:20 (10,000 bottles of wine to 200,000 bushels of wheat). Therefore, the opportunity cost of producing a bottle of wine in Canada is 20 bushels of wheat.

If Canada Specializes in the Production of Wine We Can