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Answer to Question #93821 in Economics of Enterprise for Brianna Gainey
Question #93821
Maximum Production of Bananas
Maximum Production of Coconuts
Alpha
100 bananas/day
200 coconuts/day
Beta
150 bananas/day
100 coconut
Using this information, what is Alpha’s opportunity cost of producing 1 banana in terms of coconuts?
Maximum Production of Coconuts
Alpha
100 bananas/day
200 coconuts/day
Beta
150 bananas/day
100 coconut
Using this information, what is Alpha’s opportunity cost of producing 1 banana in terms of coconuts?
Expert's answer
Alpha’s opportunity cost of producing 1 banana in terms of coconuts is 200/100 = 2 coconuts.
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