For each watch Marina produces, it gives up the opportunity to make 50 pounds of cheese. Cambria can produce one watch for every 100 pounds of cheese it produces. If specialization and trade were to occur betwee these two countries, which of the following is true with regard to opportunity costs in the two countries? O a. The opportunity cost of producing cheese is higher in Marina than Cambria. O b. The opportunity cost of producing cheese is identical in both countries. O c. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese. O d. The opportunity cost of producing watches is lower in Cambria than Marina. O e. The opportunity cost of producing watches is higher in Marina than Cambria.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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For each watch Marina produces, it gives up the opportunity to make 50 pounds of cheese. Cambria can produce one watch for every 100 pounds of cheese it produces. If specialization and trade were to occur betwee
these two countries, which of the following is true with regard to opportunity costs in the two countries?
O a. The opportunity cost of producing cheese is higher in Marina than Cambria.
O b. The opportunity cost of producing cheese is identical in both countries.
O c. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.
Od. The opportunity cost of producing watches is lower in Cambria than Marina.
Oe. The opportunity cost of producing watches is higher in Marina than Cambria.
Transcribed Image Text:For each watch Marina produces, it gives up the opportunity to make 50 pounds of cheese. Cambria can produce one watch for every 100 pounds of cheese it produces. If specialization and trade were to occur betwee these two countries, which of the following is true with regard to opportunity costs in the two countries? O a. The opportunity cost of producing cheese is higher in Marina than Cambria. O b. The opportunity cost of producing cheese is identical in both countries. O c. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese. Od. The opportunity cost of producing watches is lower in Cambria than Marina. Oe. The opportunity cost of producing watches is higher in Marina than Cambria.
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