Table 1 shows the production possibilities for the USA and Mexico. Table 1 Output per hour worked Country Computers Shoes USA 3 6 pairs Mexico 1 3 Based on Table 1, trade between the United States and Mexico will occur as long as the relative price of shoes is between Group of answer choices three computers and two computers. six computers and three computers. three computers and one computer. one-half computer and one-third computer.
Table 1 shows the production possibilities for the USA and Mexico. Table 1 Output per hour worked Country Computers Shoes USA 3 6 pairs Mexico 1 3 Based on Table 1, trade between the United States and Mexico will occur as long as the relative price of shoes is between Group of answer choices three computers and two computers. six computers and three computers. three computers and one computer. one-half computer and one-third computer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Table 1 shows the production possibilities for the USA and Mexico.
Table 1
|
|
Output per hour worked |
|
|
Country |
Computers |
Shoes |
|
USA |
3 |
6 pairs |
|
Mexico |
1 |
3 |
Based on Table 1, trade between the United States and Mexico will occur as long as the relative price of shoes is between
Group of answer choices
three computers and two computers.
six computers and three computers.
three computers and one computer.
one-half computer and one-third computer.
Expert Solution
Step 1
The cost which depicts the cost of the next best alternative being foregone is known as opportunity cost. The cost and benefits of all the alternatives would be weighed and decisions would be made accordingly.
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