Ecuador and Argentina both produce shrimp and wheat. Ecuador can produce 50 thousand pounds of shrimp or 10 thousand bushels of wheat in a year. Argentina can produce 75 thousand pounds of shrimp or 25 thousand bushels of wheat in a year.Ecuador’s opportunity cost of producing one bushel of wheat is equal to                      pounds of shrimp. Argentina’s opportunity cost of producing one bushel of wheat is equal to                        pounds of shrimp.The two countries decide to specialize and trade with each other. The country that produces wheat will sell one bushel of wheat for no less than                                pounds of shrimp. The other country will pay no more than                       pounds of shrimp for the one bushel of wheat.

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Asked Sep 25, 2019
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Ecuador and Argentina both produce shrimp and wheat. Ecuador can produce 50 thousand pounds of shrimp or 10 thousand bushels of wheat in a year. Argentina can produce 75 thousand pounds of shrimp or 25 thousand bushels of wheat in a year.

Ecuador’s opportunity cost of producing one bushel of wheat is equal to                      pounds of shrimp. 

Argentina’s opportunity cost of producing one bushel of wheat is equal to                        pounds of shrimp.

The two countries decide to specialize and trade with each other. The country that produces wheat will sell one bushel of wheat for no less than                                pounds of shrimp. The other country will pay no more than                       pounds of shrimp for the one bushel of wheat. 

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Shrimp (Thousand Wheat (Thousand OC of of 1 OC 1 of bushel pounds) bushels) pound of shrimp wheat Ecuador 10/50 0.2 50/10 5 50 10 Argentina 25/75- 0.33 75/25 3 75 25

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Cost of production

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