Asked by nathi ngcobo on May 23, 2024
Verified
The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that the opportunity cost of a ton of rice in Bodoni is _____.
Table 19.1
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Cambria Bodoni Tons of rice per day T-shirts per day Tons of rice per day T-shirts per day 20010001880901001616080200142407030012320604001040050500848040600656030700464020800272010900080001,000\begin{array} { | c | c | c | c | } \hline { \text { Cambria } } & & { \text { Bodoni } } \\\hline \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } & \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } \\\hline 20 & 0 & 100 & 0 \\\hline 18 & 80 & 90 & 100 \\\hline 16 & 160 & 80 & 200 \\\hline 14 & 240 & 70 & 300 \\\hline 12 & 320 & 60 & 400 \\\hline 10 & 400 & 50 & 500 \\\hline 8 & 480 & 40 & 600 \\\hline 6 & 560 & 30 & 700 \\\hline 4 & 640 & 20 & 800 \\\hline 2 & 720 & 10 & 900 \\\hline 0 & 800 & 0 & 1,000 \\\hline\end{array} Cambria Tons of rice per day 20181614121086420 T-shirts per day 080160240320400480560640720800 Bodoni Tons of rice per day 1009080706050403020100 T-shirts per day 01002003004005006007008009001,000
A) 20 T-shirts
B) 3 T-shirts
C) 4 T-shirts
D) 10 T-shirts
E) 2 T-shirts
Opportunity Cost
The act of foregoing potential opportunities for gain from several alternatives when deciding on one.
T-shirts
Casual garments made from fabric, typically short-sleeved and collarless, worn as informal wear or under clothing.
Rice
A cereal grain which is a staple food for a large part of the world's human population, especially in Asia.
- Compute and analyze opportunity costs using provided data to ascertain comparative advantages among nations.
Verified Answer
AK
Addyson KrempaskyMay 23, 2024
Final Answer :
D
Explanation :
The opportunity cost of producing one more unit of a good is what is given up from producing another good. In Bodoni, moving from producing 100 tons of rice to 90 tons of rice (a reduction of 10 tons) allows for the production of 100 more T-shirts (from 0 to 100). Therefore, the opportunity cost of producing one ton of rice in Bodoni is 10 T-shirts (100 T-shirts divided by 10 tons of rice).
Learning Objectives
- Compute and analyze opportunity costs using provided data to ascertain comparative advantages among nations.