Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one

Question

Harlamova29_29 [7]

3 years ago

14

Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one

additional unit of food instead of textiles.

Business

1 answer:

77julia77 [94] · Answer 1 · 2022-06-14T02:43:41+03:00

Answer: 1.67 yards of textiles

Explanation:

The country can either produce 10 yards of textiles or 6 pounds of food. Opportunity cost of producing one additional unit of food instead of textiles will therefore be;

= 10/6

= 1.67 yards of textiles

<em>This shows that for every pound of food produced, 1.67 yards of textiles are foregone. </em>