Asked by
Peyton Frazier
on Dec 05, 2024Verified
(Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum.The opportunity cost in Mexico of producing 105 units of petroleum is _____ units of machinery.
A) 35
B) 70
C) 90
D) 160
Opportunity Cost
Surrendering the chance for gains from other choices by opting for one path.
Machinery
Equipment, especially of a mechanical nature, used in the production process of goods.
Petroleum
A liquid that occurs naturally under the surface of the Earth, which can be processed into fuel and a range of chemical products.
- Acquire knowledge on the theory of opportunity cost and the approach to compute it by means of production possibility frontiers.
Verified Answer
OC
Learning Objectives
- Acquire knowledge on the theory of opportunity cost and the approach to compute it by means of production possibility frontiers.