Consider the table below for the neighboring nations of Northland and West Coast
ID: 1092796 • Letter: C
Question
Consider the table below for the neighboring nations of Northland and West Coast.
The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced.
The opportunity cost of producing 1 pastry in Northland is ____sandwiches, and the opportunity cost of producing 1 sandwich in Northland is _____pastries.Assume that the opportunity costs of producing these goods are constant in both nations.
The opportunity cost of producing 1 pastry in West Coast is _____sandwiches and the opportunity cost of producing 1 sandwiches in West Coast is ______pastries.
Product Northland West Coast Pastries (per hour) 30,000 300,000 Sandwiches (per hour) 12,000 240,000Explanation / Answer
The opportunity cost of producing 1 pastry in Northland is __0.4__sandwiches, and the opportunity cost of producing 1 sandwich in Northland is _2.5____pastries.Assume that the opportunity costs of producing these goods are constant in both nations.
12000/30000 = 0.4
30,000 /12,000 = 2.5
The opportunity cost of producing 1 pastry in West Coast is _0.8____sandwiches and the opportunity cost of producing 1 sandwiches in West Coast is _1.2_____pastries.
240,000 / 300,000 = 4/5 = 0.8
300,000 / 240,000 = 1.2