Question

Japan must give up the production of 75 computers to produce 25 additional cellular telephones. The opportunity cost of producing 3 computers is _____ cell phone(s).

Answer 1

Answer:

One

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

If Japan decides to produce computers, it forgoes the opportunity of producing phones

Opportunity cost of one computer = 25/75 = 1 /3

Opportunity cost of producing 3 computers 3 ×(1/3)= 1 phone

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