In Figure 35.1, what is the opportunity cost of DVD players in Japan?

Question

Quizplus · Accepted Answer

The opportunity cost of DVD players in Japan is 2 motorcycles per DVD player. Therefore, the best choice would be to import DVD players from the United States, where the opportunity cost of DVD players is only 1 motorcycle per DVD player. This is because by importing from the US, Japan only needs to give up one motorcycle to get a DVD player, whereas producing it domestically would require giving up 2 motorcycles for each DVD player.