Reference: Ref 2-1 (Table: iPhone and iPod Production) According to the table on iPhone and iPod Production, the opportunity cost of producing one iPhone is:
A) 4/3 of one iPod for Canada, and two iPods for the United States.
B) two iPods for Canada, and four iPods for the United States.
C) 3/4 of one iPod for Canada, and one iPod for the United States.
D) one iPod for Canada, and 3/4 of one iPod for the United States.

Question

Reference: Ref 2-1 (Table: iPhone and iPod Production) According to the table on iPhone and iPod Production, the opportunity cost of producing one iPhone is:
A) 4/3 of one iPod for Canada, and two iPods for the United States. 
B) two iPods for Canada, and four iPods for the United States. 
C) 3/4 of one iPod for Canada, and one iPod for the United States. 
D) one iPod for Canada, and 3/4 of one iPod for the United States.

Quizplus · Accepted Answer

According to the table, for Canada, producing one iPhone would require giving up the production of 0.75 iPods (3/4 of one iPod), while for the United States, producing one iPhone would require giving up the production of one whole iPod. Therefore, the opportunity cost of producing one iPhone is 3/4 of one iPod for Canada, and one whole iPod for the United States. Option C is the only choice that matches this opportunity cost.

Reference: Ref 2-1 (Table: IPhone and IPod Production) According to the Table