The following table shows the hourly output per worker for Greece and Italy measured as quarts of

Question:

The following table shows the hourly output per worker for Greece and Italy measured as quarts of olive oil and pounds of pasta.

Output per Hour of Work Olive Oil Pasta 2 Greece 4 Italy 4

Calculate the opportunity cost of producing olive oil and pasta in both Greece and Italy.

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...