# Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output...

###### Question:

Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets.

 Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5
1. Peruvia’s opportunity cost to produce an additional keg of coffee is _________ kilos of bananas.

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