Use the following to answer question:

-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing 1 box of cell phones for Finland is _____ box(es)of herring.
A)10
B)0.5
C)5
D)0.1

Question

Use the following to answer question:

-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing 1 box of cell phones for Finland is _____ box(es)of herring.
A)10 
B)0.5 
C)5 
D)0.1

Quizplus · Accepted Answer

To calculate opportunity cost, we need to look at the trade-off between producing one unit of cell phones and producing one unit of herring. For Finland, the opportunity cost of producing one box of cell phones is 5 boxes of herring (100/20=5). This means that Finland would have to give up producing 5 boxes of herring in order to produce one box of cell phones. Therefore, the best choice for the opportunity cost of producing 1 box of cell phones for Finland is C, which is 5.

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