Use the following to answer questions :
-(Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and Salmon Production Possibilities. The table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of salmon for Alaska is:
A)2 coffees.
B)0.25 coffee.
C)1 coffee.
D)0.5 coffee.

Question

Use the following to answer questions : 
-(Table: Coffee and Salmon Production Possibilities) Look at the table Coffee and Salmon Production Possibilities. The table shows the maximum amounts of coffee and salmon that Brazil and Alaska can produce if they just produce one good. The opportunity cost of producing 1 unit of salmon for Alaska is:
A)2 coffees. 
B)0.25 coffee. 
C)1 coffee. 
D)0.5 coffee.

Quizplus · Accepted Answer

The opportunity cost of producing 1 unit of salmon for Alaska is 2 coffees (as shown in the table). Therefore, Brazil has a comparative advantage in producing coffee and Alaska has a comparative advantage in producing salmon. Based on this, it would be most efficient for Brazil to produce coffee and Alaska to produce salmon, leading to the highest combined output.

Use the Following to Answer Questions