Question

There are two countries (Country A and Country B) that produce bluray disks and bags of microwave popcorn. Country A can produce either 100,000 bluray disks and 0 bags of popcorn per month, or 0 bluray disks and 200,000 bags of popcorn per month. Country B can produce either 80,000 bluray disks and 0 bags of popcorn per month, or 0 bluray disks and 80,000 bags of popcorn per month.

D) What is the opportunity cost of producing an additional bag of popcorn in Country A? What is the opportunity cost of producing an additional bag of popcorn in Country B? What is the opportunity cost of producing an additional bluray disk in Country A? What is the opportunity cost of producing an additional bluray disk in Country B?

Answer 1

Answer
Opportunity cost of production of x=Max(production of y)/max(production of x)
the opportunity cost of producing an additional bag of popcorn in Country A
=100000/200000=0.5 BluRay disks

the opportunity cost of producing an additional bag of popcorn in Country B
=80000/80000
=1 Bluray disk

the opportunity cost of producing an additional BluRay disk in Country A
=200000/100000
=2 bags of popcorn
What is the opportunity cost of producing an additional BluRay disk in Country B
=80000/80000
=1 bag of popcorn