calculate the opportunity cost of cotton for country A and country B The image presents two production possibility curves (PPC) for two different countries, Country A and Country B. These graphs illustrate the trade-offs between two goods: wheat and cotton.**Country A:**- The vertical axis represents wheat, measured in thousand bushels.- The horizontal axis represents cotton, measured in thousand bales.- The maximum amount of wheat that Country A can produce is 30 thousand bushels, with no cotton production.- The maximum amount of cotton that Country A can produce is 40 thousand bales, with no wheat production.- The PPC curve is a straight line connecting the points (0, 30) on the wheat axis and (40, 0) on the cotton axis.**Country B:**- Similarly, the vertical axis represents wheat in thousand bushels, while the horizontal axis represents cotton in thousand bales.- The maximum wheat production for Country B is 90 thousand bushels, with no cotton production.- The maximum cotton production for Country B is 80 thousand bales, with no wheat production.- The PPC curve is a straight line connecting the points (0, 90) on the wheat axis and (80, 0) on the cotton axis.These PPC graphs illustrate the maximum efficient production combinations of wheat and cotton for each country, given their resources and technology. The line represents the trade-off between the two goods: as more of one good is produced, less of the other can be produced, demonstrating opportunity cost.

Opportunity cost is the forgone benefit from the next best alternative. If two alternatives are…

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calculate the opportunity cost of cotton for country A and country B

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

calculate the opportunity cost of cotton for country A and country B

The image presents two production possibility curves (PPC) for two different countries, Country A and Country B. These graphs illustrate the trade-offs between two goods: wheat and cotton.

**Country A:**

- The vertical axis represents wheat, measured in thousand bushels.
- The horizontal axis represents cotton, measured in thousand bales.
- The maximum amount of wheat that Country A can produce is 30 thousand bushels, with no cotton production.
- The maximum amount of cotton that Country A can produce is 40 thousand bales, with no wheat production.
- The PPC curve is a straight line connecting the points (0, 30) on the wheat axis and (40, 0) on the cotton axis.

**Country B:**

- Similarly, the vertical axis represents wheat in thousand bushels, while the horizontal axis represents cotton in thousand bales.
- The maximum wheat production for Country B is 90 thousand bushels, with no cotton production.
- The maximum cotton production for Country B is 80 thousand bales, with no wheat production.
- The PPC curve is a straight line connecting the points (0, 90) on the wheat axis and (80, 0) on the cotton axis.

These PPC graphs illustrate the maximum efficient production combinations of wheat and cotton for each country, given their resources and technology. The line represents the trade-off between the two goods: as more of one good is produced, less of the other can be produced, demonstrating opportunity cost.

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