If the nation of Erbia can produce 1 laptop in 4 hours and 1 refrigerator in 8 hours, then the opportunity cost of producing one more refrigerator is:
A) 4 laptops.
B) 2 laptops.
C) 1 laptop.
D) 8 laptops.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one more refrigerator is the amount of the other good that must be given up to produce it. Since Erbia can produce 1 laptop in 4 hours and 1 refrigerator in 8 hours, producing one refrigerator costs the same amount of time as producing 2 laptops. Therefore, the opportunity cost of one refrigerator is 2 laptops.

If the Nation of Erbia Can Produce 1 Laptop in 4