Use the figure below to answer questions 10-11. Country B Bicycles (per period) Country A Tons of radishes (per period) Bicycles (per period) N Tons of radishes (per period) 10. The figure shows production possibility curve for two countries that produce only radishes and bicycles. The axes of both graphs are measured in equivalent units. Country A is now operating at point M, and Country B is now operating at point N. The opportunity cost of producing an additional ton of radishes would be: greater in Country A than in Country B. greater in Country B than in Country A. the same in both countries. a. b. C. d. greater at point M than at point N. e. zero for either country if the country was operating on the production possibility curve. Use the to shows th Brazil an good. Brazil Alask 13. 14
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Answer:
Based on the information provided in the figure, the opportunity cost of producing an additional ton of radishes would be greater in Country A than in Country B.
Explanation:
The production possibility curve represents the trade-off between the production of radishes and bicycles in each country. Points on the curve represent efficient allocation of resources, while points inside the curve represent underutilization and points outside the curve are unattainable.
Country A is operating at point M, which is inside the production possibility curve. This indicates that Country A is not utilizing its resources efficiently. In other words, it could produce more radishes without sacrificing as many bicycles.
Country B is operating at point N, which is on the production possibility curve. This means that Country B is efficiently utilizing its resources to produce radishes and bicycles.
The opportunity cost of producing an additional ton of radishes refers to the amount of bicycles that need to be given up to increase radish production. Since Country A is not operating at its maximum potential, it has a lower opportunity cost for producing an additional ton of radishes compared to Country B.
Therefore, the opportunity cost of producing an additional ton of radishes would be greater in Country B than in Country A.
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