Question

In Chile, one worker can harvest 4 pounds of peppers or 4 pounds of coffee beans. In Argentina, one worker can harvest 2 pounds of peppers or 8 pounds of coffee beans. What is the opportunity cost for both countries to harvest another 4 pounds of peppers

Answer 1

Chile- 4 pounds of coffee beans, Argentina - 16 pounds of coffee beans, is the correct solution of the question.

Explanation of the question?

It loses 4 pounds of coffee beans if one worker produces 4 pounds of peppers. As a result, if the worker produces 4 pounds extra peppers, 4 pounds of coffee beans will be lost. As a result, the opportunity cost of generating an additional 4 pounds of peppers for Chile is equal to 4 pounds of coffee beans.

Argentina's case:

It loses 8 pounds of coffee beans if one worker produces 2 pounds of peppers.

As a result, if the worker produces 1 pound of pepper, it loses = 8/2 = 4 pounds of coffee beans.

The worker will lose = 4 * 4 = 16 pounds of coffee beans if he produces 4 pounds of peppers.

As a result, the potential cost of producing an additional 4 pounds of peppers for Argentina is 16 pounds of coffee beans.

Thus, it is 4 pounds of coffee beans, Argentina - 16 pounds of coffee beans.

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