Japan must give up the production of 75 computers to produce 25 additional cellular telephones.The opportunity cost of producing 3 computers is _____ cell phone(s).

Question

Quizplus · Accepted Answer

To produce 25 additional cellular telephones, Japan must give up the production of 75 computers, which means the opportunity cost of producing 1 cell phone is 3 computers (75 computers/25 cell phones = 3 computers per cell phone).
Therefore, the opportunity cost of producing 3 computers is 1 cell phone (3 computers/3 computers per cell phone = 1 cell phone). Thus, the best choice is A) 1.

Japan Must Give Up the Production of 75 Computers to Produce