Question

Aruba can produce either 30 batches of apples or 90 batches of pumpkins. What is the country's opportunity cost of producing 1 batch of apples (in terms of batches of pumpkins)

Answer 1

Opportunity cost of producing 1 batch of apples = 3 batches of pumpkin

Step-by-step explanation:

Given:

Number of apples batches can produce = 30

Number of pumpkin batches can produce = 90

Find:

Opportunity cost of producing 1 batch of apples .

Computation:

Ration between apples batches and pumpkin batches = 30 / 90

Ration between apples batches and pumpkin batches = 1 / 3

Opportunity cost of producing 1 batch of apples = 3 batches of pumpkin