Question

Suppose that there are 7 million workers in Mexico and that each of these workers can produce either 2 cars or 50 bushels of wheat in a year. The opportunity cost of producing a car in Mexico is____________ bushels of wheat, and the opportunity cost of producing a bushel of wheat in Mexico is___________ cars.

Answer 1

Answer:

25

0.04

Explanation:

Opportunity cost of producing a car = amount of bushels of wheat in a year / number of cars produced in a year = 50 / 2 = 25 bushels

opportunity cost of producing a bushel of wheat = number of cars produced in a year / amount of bushels of wheat in a year = 2 / 50 = 0.04

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