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Sauron [17]
2 years ago
15

True or False. Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can c

onclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes.
Mathematics
1 answer:
BabaBlast [244]2 years ago
4 0

Answer:

False

Step-by-step explanation:

Both do not gain from the exchange. If producing 1 pumpkin is greater than 2 tomatoes, this means that Barney traded for less than he gave out in cost to produce 1 pumpkin. Barney should be demanding more tomatoes to make up the cost of producing 1 pumpkin. Fred makes a gain from the transaction. The selling price of tomatoes are less than a pumpkin. He can therefore sell 1 pumpkin to produce more than 2 tomatoes per pumpkin.

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