Table 3-26 Assume That Japan and Korea Can Switch Between Producing Cars

question 163

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
​
-Refer to Table 3-26. Japan's opportunity cost of one airplane is

• A)1/5 car and Korea's opportunity cost of one airplane is 1/3 car.
• B)1/5 car and Korea's opportunity cost of one airplane is 3 cars.
• C)5 cars and Korea's opportunity cost of one airplane is 1/3 car.
• D)5 cars and Korea's opportunity cost of one airplane is 3 cars.

---

Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive in the market.

Market Price

The ongoing value at which a commodity or service is offered for buy or sell in a trading environment.

Producer Surplus

The gap between the amount sellers are prepared to accept for a product and the actual selling price they obtain.

Crop Of Tomatoes

The product yield from cultivating tomatoes over a certain period or area.