Maximum Feasible Hourly Production Rates of Either Cuckoo Clocks or Movies Using

Question

Maximum Feasible Hourly Production Rates of Either Cuckoo Clocks or Movies Using All Available Resources ProductUnited States Cuckoo Clocks Movies 4 10 Switzerlan 2 4 Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United and the opportunity cost of producing movies in Switzerland is States is O 0.4 cuckoo clocks; 0.5 cuckoo clocks O 2.5 movies; 0.4 cuckoo clocks O 2 movies, 2 cuckoo clocks O 2.5 cuckoo clocks; 2 cuckoo clocks

Explanation / Answer

Answer
Opportunity cost of a good x=output of good y/output of good x
the opportunity cost of movies to the US is
=4/10=0.4 Cuckoo clocks
the opportunity cost of movies to Switzerland is
=(2/4)
=0.5 Cuckoo clocks
option first

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