Two countries (Sri Lanka and Peru) produce two goods (cloth and fish) according to the following...

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Two countries (Sri Lanka and Peru) produce two goods (cloth and fish) according to the following...

Two countries (Sri Lanka and Peru) produce two goods (cloth and fish) according to the following table:

	Cloth (millions)	Fish (millions)
Sri Lanka	29.9	2
Peru	7.2	26.2

If 1 PER cloth = y PER fish, then find y (the opportunity cost of cloth in terms of fish for PERU).

Round your answer to two (2) decimal places

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Answer 1

Answer #1

Answer: 3.64 units of fish

Explanation:

Peru can produce wither 7.2 million units of cloth or 26.2 million units of fish.

So, the opportunity cost of 7.2 million units of cloth = 26.2 million units of fish

So, the opportunity cost of of 1 unit of fish = 26.2/7.2 = 3.64 units of fish.

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Answer 2

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