True or False. Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can conclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes.

Question

Mathematics

Mareli Buck

11 August, 22:03

True or False. Fred trades 2 tomatoes to Barney in exchange for 1 pumpkin. Fred and Barney both gain from the exchange. We can conclude that, for Barney, the opportunity cost of producing 1 pumpkin is greater than 2 tomatoes.

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Answers (1)

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Hailie Lynch · Answer 1

False

Step-by-step explanation:

Both do not gain from the exchange. If producing 1 pumpkin is greater than 2 tomatoes, this means that Barney traded for less than he gave out in cost to produce 1 pumpkin. Barney should be demanding more tomatoes to make up the cost of producing 1 pumpkin. Fred makes a gain from the transaction. The selling price of tomatoes are less than a pumpkin. He can therefore sell 1 pumpkin to produce more than 2 tomatoes per pumpkin.