The Salar de Uyuni basin in Bolivia contains one of the world's largest deposits of lithium.  However, this basin can also be used to grow quinoa, one of the region's most important crops, and is the site of considerable tourism. A study estimated the value of mining lithium from this basin to be worth $380 million, quinoa farming to be worth $11 million, and tourism to be worth $27 million.  Assume that if the basin is mined that it cannot be used for farming or tourism. The opportunity cost of mining the basin is _____, and (based on these numbers) Bolivia _____ mine for lithium here. -$11 million; should -$38 million; should -$27 million; should -$418 million; should not

Economics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
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The Salar de Uyuni basin in Bolivia contains one of the world's largest deposits of lithium.  However, this basin can also be used to grow quinoa, one of the region's most important crops, and is the site of considerable tourism.

A study estimated the value of mining lithium from this basin to be worth $380 million, quinoa farming to be worth $11 million, and tourism to be worth $27 million.  Assume that if the basin is mined that it cannot be used for farming or tourism.

The opportunity cost of mining the basin is _____, and (based on these numbers) Bolivia _____ mine for lithium here.

-$11 million; should

-$38 million; should

-$27 million; should

-$418 million; should not

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