The opportunity cost of producing corn in New Zealand is approximately tons of millet, and the opportunity cost of producing corn in Brazil is approximately tons of millet.

Question

02-04-2021
Business

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The opportunity cost of producing corn in New Zealand is approximately tons of millet, and the opportunity cost of producing corn in Brazil is approximately tons of millet.

Sagot :

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Munali Munali · Answer 1 · 2021-04-06T02:26:52-04:00

Answer:

2 tons of millet for New Zealand and 3 tons of millet for Brazil.

Explanation:

New Zealand and brazil both can produce corns and millet. The opportunity cost for Brazil is more than the New Zealand. Both the countries should go towards the production of the crop in which they have comparative advantage. New Zealand has comparative advantage in producing millet and Brazil has comparative advantage in producing corn.

Sagot :

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