Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1
-Refer to Table 18.1. In Mexico, the opportunity cost of 1 bushel of oranges is
A) 1/2 bushel of bananas.
B) 1 bushels of bananas.
C) 2 bushel of bananas.
D) 5 bushels of bananas.

Question

Refer to the information provided in Table 18.1 below to answer the questions that follow.
Table 18.1 
-Refer to Table 18.1. In Mexico, the opportunity cost of 1 bushel of oranges is
A) 1/2 bushel of bananas. 
B) 1 bushels of bananas. 
C) 2 bushel of bananas. 
D) 5 bushels of bananas.

Quizplus · Accepted Answer

Since the table shows that in Mexico, 1 bushel of oranges can be traded for 1 bushel of bananas, the opportunity cost of 1 bushel of oranges is 1 bushel of bananas. Therefore, the best choice is to trade 1 bushel of oranges for 1 bushel of bananas.

Refer to the Information Provided in Table 18