Answer the question on the basis of the following production possibilities data for Landia and Scandia: Landia Production Possibilities:

$\begin{array} { l c c c c c } & \underline { A } & \underline { B } & \underline { C } & \underline { D } & \underline { E } \\\text { Fish }&8&6&4&2&0\\ \text { Chips } & 0 & 10 & 20 & 30 & 40 \end{array}$

Scandia Production Possibilities:

$\begin{array} { c c c c c } &\underline { A } & \underline { B } & \underline { C } & \underline { D } & \underline { E } \\\text { Fish } &16 & 12 & 8 & 4 & 0 \\\text { Chips } &0 & 12 & 24 & 36 & 48 \end{array}$ Refer to the given data.The domestic opportunity cost of 1 fish in Scandia is:

Question

Answer the question on the basis of the following production possibilities data for Landia and Scandia: Landia Production Possibilities:

\begin{array} { l c c c c c } & \underline { A } & \underline { B } & \underline { C } & \underline { D } & \underline { E } \\\text { Fish }&8&6&4&2&0\\ \text { Chips } & 0 & 10 & 20 & 30 & 40 \end{array}

Scandia Production Possibilities:

\begin{array} { c c c c c } &\underline { A } & \underline { B } & \underline { C } & \underline { D } & \underline { E } \\\text { Fish } &16 & 12 & 8 & 4 & 0 \\\text { Chips } &0 & 12 & 24 & 36 & 48 \end{array}

Refer to the given data.The domestic opportunity cost of 1 fish in Scandia is:

Quizplus · Accepted Answer

The domestic opportunity cost of 1 fish in Scandia is the number of chips that must be given up to produce 1 fish. In Scandia, 1 fish requires giving up 3 chips (from the given data). Therefore, the domestic opportunity cost of 1 fish in Scandia is 3 chips. So, the best choice is C, which is the only option that matches this result.

Answer the Question on the Basis of the Following Production