Yekutia has the resources to manufacture 320 motorcycles or 570 lawn-mowers per year. The country of Bezanitia, has the capability of producing 230 motorcycles or 410 lawn-mowers per year. Which country has the largest opportunity cost to produce one more motorcycle and what is the opportunity cost to that country?

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01-02-2021
Business

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Yekutia has the resources to manufacture 320 motorcycles or 570 lawn-mowers per year. The country of Bezanitia, has the capability of producing 230 motorcycles or 410 lawn-mowers per year. Which country has the largest opportunity cost to produce one more motorcycle and what is the opportunity cost to that country?

Sagot :

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ewomazinoade ewomazinoade · Answer 1 · 2021-02-02T19:03:53-05:00

Answer:

Bezanitia,

1.782609

Explanation:

Opportunity cost is the cost of the next best option forgone hen one alternative is chosen over another alternative.

By choosing to produce one more motorcycle, the countries would be giving up the opportunity to produce one more unit of lawn mowers

Yekutia's opportunity cost in the production of motor cycle = 570 / 320 = 1.781250

Bezanitia's opportunity cost in the production of motor cycle = 410 / 230 = 1.782609

Sagot :

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