Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.

-Refer to Table 3-24. The opportunity cost of 1 unit of cheese for England is
A)1/4 unit of bread.
B)1 hour of labor.
C)4 units of bread.
D)4 hours of labor.

Question

Table 3-24
Assume that England and Spain can switch between producing cheese and producing bread at a constant rate.
​  ​
-Refer to Table 3-24. The opportunity cost of 1 unit of cheese for England is
A)1/4 unit of bread. 
B)1 hour of labor. 
C)4 units of bread. 
D)4 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of producing 1 unit of cheese is the amount of bread that could have been produced with the same resources. If England can produce 4 units of bread with the resources needed for 1 unit of cheese, then the opportunity cost is 1/4 unit of bread per unit of cheese.

Table 3-24 Assume That England and Spain Can Switch Between Producing Cheese