Use the following to answer questions:
-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing one box of cell phones for Finland is _____ box(es)of herring.
A) 10
B) 0.5
C) 5
D) 0.1

Question

Use the following to answer questions: 
-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing one box of cell phones for Finland is _____ box(es)of herring.
A) 10 
B) 0.5 
C) 5 
D) 0.1

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the amount of herring that could be produced instead of one box of cell phones. If Finland gives up 5 boxes of herring to produce 1 box of cell phones, the opportunity cost is 5 boxes of herring.

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