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Suppose that Richland and Prosperity have the production possibilities shown below: RICHLAND'S PRODUCTION POSSIBILITIES (millions of units) A B C D E Wheat 60 45
Suppose that Richland and Prosperity have the production possibilities shown below: RICHLAND'S PRODUCTION POSSIBILITIES (millions of units) A B C D E Wheat 60 45 30 15 Wine 5 10 15 20 PROSPERITY'S PRODUCTION POSSIBILITIES (millions of units) A B C D E Wheat 40 30 20 10 Wine 15 30 45 50 Assume that cost and productivity remain constant. Round your answers below to 2 decimal places. a. What is the opportunity cost of producing one bushel of wheat in Richland? 1 bushel of wheat = barrels of wine. b. What is the opportunity cost of producing one barrel of wine in Richland? 1 barrel of wine = bushels of wheat. c. What is the opportunity cost of producing one bushel of wheat in Prosperity? 1 bushel of wheat = barrels of wine
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