Use the following to answer question:
-(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.The opportunity cost of producing 1 microchip in Malaysia is _____ tire(s).

Question

Use the following to answer question: 
-(Figure: The Production Possibilities for Two Countries)Use Figure: The Production Possibilities for Two Countries.The opportunity cost of producing 1 microchip in Malaysia is _____ tire(s).

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the trade-offs between two goods. If Malaysia gives up 0.5 tires to produce 1 microchip, then the opportunity cost of producing 1 microchip is 0.5 tires.

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