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Imagine that a country only produces blankets and pillows and the tradeoff between the production of these two goods is constant. If the country dedicates
Imagine that a country only produces blankets and pillows and the tradeoff between the production of these two goods is constant. If the country dedicates all of its resources to blankets, it can produce 5000 blankets. If it dedicates all of its resources to pillows, it can produce 1000 pillows.
What is the opportunity cost of blankets in this country?
5 pillows per blanket
1/5 pillows per blanket
1/5 blankets per pillow
5 blankets per pillow
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