Table 2-5
Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.What is Estonia's opportunity cost of producing one board foot of lumber?
A)0.2 cell phones
B)5 cell phones
C)8 cell phones
D)32 cell phones

Question

Table 2-5
  Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of lumber in Estonia and Finland.
-Refer to Table 2-5.What is Estonia's opportunity cost of producing one board foot of lumber?
A)0.2 cell phones 
B)5 cell phones 
C)8 cell phones 
D)32 cell phones

Quizplus · Accepted Answer

The opportunity cost is calculated by dividing the number of cell phones that could be produced by the number of board feet of lumber that could be produced. If Estonia can produce 5 cell phones or 25 board feet of lumber, the opportunity cost of 1 board foot of lumber is 5/25 = 0.2 cell phones.

Table 2-5 Table 2-5 Shows the Number of Labor Hours