If South Korea must give up the production of 75 notebook computers to produce 25 additional cell phones, the opportunity cost of producing four cell phones is _____ notebook computers.

Question

Quizplus · Accepted Answer

To produce 25 additional cell phones, South Korea must give up producing 75/3 = 25 notebook computers. Therefore, the opportunity cost of producing one cell phone is 1 notebook computer. To produce four cell phones, the opportunity cost is 4 notebook computers, which is option B.

If South Korea Must Give Up the Production of 75