Opportunity Cost:Coffee Production in Brazil:Wheat Production in Peru :: Opportunity Cost: ?

Opportunity cost is what you give up when you choose one option over another. In this case, if Brazil decides to produce coffee instead of wheat, the opportunity cost is the wheat it could have produced instead. Similarly, for Peru, if it focuses on wheat production, the opportunity cost is the coffee it could have grown. For example, if Brazil can produce either 100 units of coffee or 50 units of wheat, choosing coffee means it sacrifices the ability to produce 50 units of wheat. Therefore, the opportunity cost for Brazil’s coffee production is the wheat that could have been made, just like Peru's opportunity cost for wheat production is the coffee it could have produced.