For Oscar, what is the opportunity cost of producing 1 pound of coffee? (add only number)…
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Question “For Oscar, what is the opportunity cost of producing 1 pound of coffee? (add only number)…”
For Oscar, what is the opportunity cost of producing 1 pound of coffee? (add only number) pounds of bananas Oscar and Julia can both produce either bananas or coffee. Oscar can produce either 16 pounds of coffee and 0 pounds of bananas or 64 pounds of bananas and O pounds of coffee. Julia can produc elther 20 pounds of coffee and O pounds of bananas or 40 pounds of bananas and O pounds of coffee. (Round your answers to two decimal places, where appropriate) Submit Do you know the answer? I know it Think so No idea
When you see a production possibilities frontier (PPF) drawn as a straight line,the opportunity cost of one good or service (in terms of units of the other good or service that must be given up is assumed to be Click the answer you think is right. vertical Do you know the answer? I know it Think so No idea
Answer
Both Julia and Oscar can produce bananas or coffee. Oscar can either produce 16 pounds of coffee with 0 pounds bananas, or 64 pounds of bananas and 0 lbs of coffee. Julia can either produce 20 pounds of coffee with 0 pounds bananas, 40 pounds of bananas, and 0 lbs of coffee. The opportunity cost refers to the cost of the next best alternative or missed opportunity. Oscar’s opportunity cost for producing one pound of coffee is: Opoortunity Cost-Loss Gain 64 16 = four pounds of bananas. When you draw a production possibilities frontier, (PPF), it looks like a straight line. This shows that the opportunity cost of one product or service is assumed constant. Option A is therefore correct.
Conclusion
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