If a country can produce 200 apples or 90 lemons in a day, what is the opportunity cost of 1 apple?
can someone exaplain this calculuation for me
Answer:
If you want to produce 200 apples, you need to give up 90 lemons.
If you want to produce 1 (200/200) apple, you need to give up 90/200 lemons.
.45. The question is, if I produce one apple less, how many lemons can I produce? Intuitively, lemons are more costly to produce than apples ( I can produce a lot more apples) so intuitively the opportunity cost of an apple is less than one, but it can be verified with the correct calculation which is 90/200
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Answer:
If you want to produce 200 apples, you need to give up 90 lemons.
If you want to produce 1 (200/200) apple, you need to give up 90/200 lemons.
.45. The question is, if I produce one apple less, how many lemons can I produce? Intuitively, lemons are more costly to produce than apples ( I can produce a lot more apples) so intuitively the opportunity cost of an apple is less than one, but it can be verified with the correct calculation which is 90/200
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