Question

Suppose that in a day a worker in the United States can produce 10 bushels of corn or 2 shirts. In Russia a worker can produce 9 bushels of corn or 3 shirts in one day. The opportunity cost of a shirt in the United States is ______ bushels of corn.

Answer 1

5 bushels of corn

Step-by-step explanation:

The term opportunity cost refers to the loss from some potential gain when one alternative is chosen while leaving the other opportunities.

In United States, a worker in a day can produce 10 bushels of corn or can produce 2 shirts.

Thus the ratio is

10 bushels of corn : 2 shirts

or 5 bushels of corn : 1 shirts

Therefore the opportunity cost of a shirt in the United States is 5 bushels of corn.

Thus the answer is 5 bushels of corn.