If Japan must give up the production of 100 computers to produce 25 additional cellular telephones, the opportunity cost of producing four cellular telephones is _____ computers.

Question

Quizplus · Accepted Answer

To produce 25 additional cellular telephones, Japan must give up the production of 100 computers. Therefore, the opportunity cost of producing 1 cellular telephone is 100/25 = 4 computers. So the opportunity cost of producing 4 cellular telephones would be 4x4=16 computers. Thus, the correct answer is B.

If Japan Must Give Up the Production of 100 Computers