1 answer

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.

Answers

Consoles( χ Reg co banan. To poduco one additional Rogaf )ら bananag

.

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