What is the United States opportunity cost of producing 1 stereo?

Mathematics

1 answer:

slava [35]3 years ago

6 0

If the US could make 14 stereos/hr or 7 cars/hr, this is a ratio of 2 stereos/1 car, or 1 stereo/0.5 cars. Therefore the US opportunity cost of producing 1 stereo is 0.5 car of half a car.
If China (or Japan? given the question in #2) makes 15 stereos/hr or 5 cars/hr, this is a ratio of 3 stereos/1 car, or 1 stereo/0.33 cars.

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