Cost of producing an additional unit of soybeans in japan

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Problem: Assume that if Japan devotes all its relevant resources to the production of soybeans, it could produce 10 million units of soybeans. If the United States did the same, it could produce 40 million units of soybeans. On the other hand, if Japan used its resources to produce wheat, it could produce 5 million units of wheat, while the United States could produce 10 million units of wheat. Assume that the trade-off between expanding soybean production and reducing wheat production is always the same.

Required:

a. What is the opportunity cost of producing an additional unit of soybeans in Japan?

b. What is the opportunity cost of producing an additional unit of soybeans in the United States?

Reference no: EM132098869

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