Refer to Table 20.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.
B) 1 bushels of bananas.
C) 2 bushels of bananas.
D) 4 bushels of bananas.

Question

Refer to Table 20.1. In Guatemala, the opportunity cost of 1 bushel of oranges isA)  1/2 bushel of bananas.B)  1 bushels of bananas.C)  2 bushels of bananas.D)  4 bushels of bananas.

crylle coyme · Accepted Answer

Final Answer : C, Explanation :  The opportunity cost of 1 bushel of oranges in Guatemala can be calculated from the change in bananas as oranges are increased by 10 bushels (from 0 to 10, 10 to 20, etc.). From the table, moving from 0 to 10 bushels of oranges results in a decrease from 100 to 80 bushels of bananas, a change of 20 bushels of bananas for 10 bushels of oranges. Therefore, the opportunity cost of 1 bushel of oranges is 20/10 = 2 bushels of bananas.

Refer to Table 20.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.
B) 1 bushels of bananas.
C) 2 bushels of bananas.
D) 4 bushels of bananas.

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