For each watch Switzerland produces, it gives up the opportunity to produce 50 pounds of cheese. Germany can produce one watch at a cost of 100 pounds of cheese. Which of the following is true?
a. The opportunity cost of producing watches is greater in Switzerland.
b. The opportunity cost of producing cheese is greater in Switzerland.
c. The opportunity cost of producing cheese is the same in both countries.
d. It is impossible to compare costs because the two countries use different technologies.
e. In the two countries combined, the cost of producing one watch is 150 pounds of cheese.
B
Economics
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