France must give up the production of 100 ties to produce 50 additional dress shirts. The opportunity cost of producing four dress shirts is _____ ties.

Question

Quizplus · Accepted Answer

If France gives up 100 ties, they can produce 50 additional dress shirts. So, the opportunity cost of producing 1 dress shirt is 2 ties (100 ties/50 dress shirts). Therefore, the opportunity cost of producing 4 dress shirts is 8 ties (2 ties per dress shirt multiplied by 4 dress shirts).

France Must Give Up the Production of 100 Ties to Produce