Asked by Summer Bourbon on Apr 24, 2024

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(Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost in Mexico of producing 10 units of machinery is _____ units of petroleum.

A) 30
B) 90
C) 180
D) 270

Opportunity Cost

The expense of not choosing the second-best option while making a choice.

Machinery

Mechanical devices or assemblies, often powered by electricity or engines, that perform specific tasks, commonly used in industries for production processes.

Petroleum

A natural, flammable liquid found in the Earth's formations, composed of a complex mixture of hydrocarbons and used primarily as fuel.

  • Understand the concept of opportunity cost and how to calculate it using production possibility frontiers.
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ZK
Zybrea KnightMay 02, 2024
Final Answer :
A
Explanation :
The opportunity cost of producing 10 units of machinery in Mexico is the amount of petroleum that could have been produced with the resources used for those 10 units of machinery. Without the specific table data, the general principle is that the opportunity cost is the amount of one good that must be given up to produce another. In this case, choice A (30 units of petroleum) is marked as the correct answer, implying that to produce 10 more units of machinery, Mexico would have to forego the production of 30 units of petroleum.