The following table shows the production of cows’ milk and potatoes per unit of input in the hypothetical countries of St. Claire and St. Paul. Use the following table to answer the questions. St. ClaireSt PaulCows’ Milk100 litres50 litresPotatoes150 kilos60 kilos 1..What is the opportunity cost of producing one liter of cows’ milk in St.Claire?2.What is the opportunity cost of producing one liter of cows’ milk in St.Paul?3.Which country has the comparative advantage in the production of cows’milk?

Opportunity cost is the value of the next best alternative that has been given up in order to engage…

Answered: The following table shows the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table shows the production of cows’ milk and potatoes per unit of input in the hypothetical countries of St. Claire and St. Paul. Use the following table to answer the questions.

	St. Claire	St Paul
Cows’ Milk	100 litres	50 litres
Potatoes	150 kilos	60 kilos

1..What is the opportunity cost of producing one liter of cows’ milk in St.

Claire?

2.What is the opportunity cost of producing one liter of cows’ milk in St.

Paul?

3.Which country has the comparative advantage in the production of cows’

milk?

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