Remaining Time: 06 minutes, 58 seconds. -Question Completion Status: Suppose tha
ID: 1120785 • Letter: R
Question
Remaining Time: 06 minutes, 58 seconds. -Question Completion Status: Suppose that the United States and Canada each produce only two products, televisions and food. The United States can produce 100tlevions 100 televisions and no food,50 televisions and 75 pounds of food, or 150 pounds of food and no televi produce 300 elevsions a day, 330 pounds of food a day, or any linear combination in between. What is the United States' pportunity cost for producing 1 pound of food? a. 100 televisions a day, 150 pounds of fod a day, or any linear combination in between.(For example,it could produce sions.) Canada can b.150 televisions 1.5 televisions d. two-thirds of a television ave and Subnit to save and submit.Click Save All Answers to save all answers.Explanation / Answer
The right answer is option D. two-thirds of a television.
Explanation: Opportunity cost is what is given up for choosing another alternative. If the United States wants to produce only food and no television, it will produce 150 pounds of foods and 0 television. So, its opportunity cost of producing 150 founds of food = 100 televisions (the no. of televisions the USA could produce if it produced no food).
So, the opportunity cost of 1 pound of food = 100/150 = 2/3 televisions.