Use the following to answer questions:
-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing one box of herring for Finland is _____ box(es)of cell phones.
A) 10
B) 0.2
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 herring for Finland is _____ box(es)of cell phones.
A) 10 
B) 0.2 
C) 5 
D) 0.1

Quizplus · Accepted Answer

The opportunity cost is calculated by dividing the number of cell phones that could be produced by the number of herring boxes that could be produced. If Finland can produce 5 cell phones or 1 box of herring, the opportunity cost of 1 box of herring is 1/5 = 0.2 cell phones.

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