Asked by Jennifer Osorio on Jul 21, 2024
Verified
(Figure: Comparative Advantage) Use Figure: Comparative Advantage.The opportunity cost of producing 1 box of peaches for Westland is _____ box(es) of oranges.
A) 1
B) 0.25
C) 4
D) 10
Peaches
A type of fruit known for its soft skin and sweet, juicy flesh, often enjoyed fresh or used in culinary dishes.
Oranges
A citrus fruit grown in warm climates, commonly consumed fresh, juiced, or used as flavoring in culinary dishes.
- Compute the opportunity costs using the provided data.
Verified Answer
VS
vipin s babuJul 26, 2024
Final Answer :
B
Explanation :
According to the graph, the opportunity cost of producing 1 box of peaches for Westland is 0.25 box(es) of oranges, which means that Westland has a comparative advantage in producing peaches as their opportunity cost of producing peaches is lower than the opportunity cost of producing peaches for Eastland. Therefore, Westland should produce peaches while Eastland should produce oranges to maximize their combined output.
Learning Objectives
- Compute the opportunity costs using the provided data.