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France can produce 100 bottles of wine or 25 boxes of cheese. Italy can produce 80 bottles of wine or 40 boxes of cheese. What is France's opportunity cost of producing one box of cheese

1 box of cheese =4 bottles of wine

1 box of cheese =2 bottles of wine

1 box of cheese =10 bottles of wine

1 box of cheese =5 bottles of wine

Answer :

France's opportunity cost of producing one box of cheese will be A. 1 box of cheese =4 bottles of wine

How to calculate tie value

Given the production possibilities in France and Italy:

France: 100 bottles of wine = 25 boxes of cheese

Italy: 80 bottles of wine = 40 boxes of cheese

In order to find the opportunity cost of producing one box of cheese in France, we can use the ratio of wine to cheese production:

France: 100 bottles of wine / 25 boxes of cheese = 4 bottles of wine per box of cheese

Italy: 80 bottles of wine / 40 boxes of cheese = 2 bottles of wine per box of cheese

Comparing the two ratios, we can conclude that France's opportunity cost of producing one box of cheese is 4 bottles of wine.

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