If Japan must give up the production of 75 computers to produce 25 additional cellular telephones,the opportunity cost of producing 4 cellular telephones is _____ computers.

Question

Quizplus · Accepted Answer

To produce 25 additional cellular telephones, Japan must give up the production of 75/3 = 25 computers. Therefore, the opportunity cost of producing 1 cellular telephone is 1 computer. 
To produce 4 cellular telephones, the opportunity cost would be 4 computers. Thus, the correct answer is B) 12 computers.

If Japan Must Give Up the Production of 75 Computers