Question

83) Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States

Answer 1

Opportunity cost = 0.25 motor engine

Step-by-step explanation:

Below is the given value:

In the U.S. ,Opportunity cost of 1 motor engine = 4 auto bodies

In the Canada, Opportunity cost 1 motor engine = 2 auto bodies

Below is the calculation for opportunity cost pf 1 auto body in the U.S.

Opportunity cost = Motor engine / Auto body

Opportunity cost = 1 / 4

Opportunity cost = 0.25 motor engine