... International Economics; Questions & answers Question a Developing country of Sud Corn T.V 100,000 0 0 1000 The opportunity cost of 1000 television sets is 100,000 bushels of corn, therefore opportunity cost of producing a television set is given as,
(1 x 100,000)/1000
The opportunity cost of 100,000 bushels of corn is 10,000 television sets, therefore the opportunity cost of a bushel of corn in this country is giving as,
(1 x 1000)/ 100,000
The first ratio means that for developing country of Sud to produce additional unit of a television set, it must forgo 100 bushels of corn. On the other hand, the country must forgo 0.01 units of television sets in order to produce an additional unit of ...