The linear production possibility frontier in the US indicates that the US can produce 10 tons of wheat in day or 2 cars. Japan can produce 8 tons of wheat or 1 car in a day. The opportunity cost of producing a car in the Japan is

Respuesta :

Based on the amount of wheat given up by Japan to make a car, the opportunity cost of producing a car would be 8 tons of wheat.

What is the opportunity cost of making a car in Japan?

The opportunity cost in this instance will be the amount of wheat given up by Japan to produce a car.

It is therefore:

= 8 tons of wheat

In conclusion, the opportunity cost is 8 tons of wheat.

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