Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or 1 computer in an hour. The opportunity cost of 20 cameras in terms of computers in Germany is
A) 1 computer per camera.
B) 2 computers per camera..
C) 10 computers per camera.
D) 1/20 of a computer per camera..

Question

Quizplus · Accepted Answer

The opportunity cost of producing 20 cameras in Germany is 1 computer, as the factory could have produced 1 computer instead of 20 cameras.

Suppose That a Typical German Factory Can Produce 20 Cameras