Asked by
La'Resha McCray
on Dec 08, 2024
Verified
Refer to Table 20.2. In Thailand, the opportunity cost of
A) a motorcycle is 1/15 of a tractor.
B) a motorcycle is 15 tractors.
C) a motorcycle is 1/30 of a tractor.
D) a tractor is 20 motorcycles.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision, representing the benefits lost by choosing one option over another.
Tractor
A tractor is a powerful motor vehicle designed for agricultural use, often used to pull farm equipment and haul goods.
Motorcycle
A two-wheeled vehicle powered by an engine, designed for individual or small-number passenger transport.
- Compute the opportunity cost and comprehend its function in establishing comparative advantage.
Verified Answer
BV
Learning Objectives
- Compute the opportunity cost and comprehend its function in establishing comparative advantage.