Asked by Hunter Kinnett on Jun 13, 2024
Verified
(Table: The Production Possibilities for Tractors and Crude Oil) Use Table: The Production Possibilities for Tractors and Crude Oil.In Mexico,the opportunity cost of producing 40 tractors is _____ barrels of crude oil.
A) 30,000
B) 90,000
C) 120,000
D) 270,000
Opportunity Cost
The cost of foregoing the next best alternative when making a decision or choosing an option over another.
Crude Oil
An organic, unprocessed fossil fuel consisting of hydrocarbon reserves and additional organic matter.
Tractors
Tractors are powerful and versatile agricultural machines used for plowing, tilling, and performing various tasks required in crop production.
- Acquire insight into the idea of opportunity cost and its fluctuating nature from one country to another.
Verified Answer
RW
Romany WasilJun 19, 2024
Final Answer :
C
Explanation :
To produce 40 tractors, Mexico must give up producing 120,000 barrels of crude oil (60,000 for 20 tractors + 30,000 for another 20 tractors). Therefore, the opportunity cost of producing 40 tractors is 120,000 barrels of crude oil.
Learning Objectives
- Acquire insight into the idea of opportunity cost and its fluctuating nature from one country to another.