Asked by Emaree Reeves on Jun 03, 2024
Verified
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) .
A) 1
B) 3
C) 22
D) 28
Opportunity Cost
The value of the next best alternative that one gives up when making a decision.
Computers
Electronic devices that process, store, and communicate information through logical operations.
Cellular Telephones
Personal communication devices that use a network of radio frequencies to connect calls between mobile users.
- Understand the concept of opportunity cost when making various trade-offs and how to calculate it in diverse situations.
Verified Answer
NS
Nihal SinghJun 08, 2024
Final Answer :
A
Explanation :
To produce 25 additional cellular telephones, Japan must give up the production of 75 computers, which means the opportunity cost of producing 1 cell phone is 3 computers (75 computers/25 cell phones = 3 computers per cell phone).
Therefore, the opportunity cost of producing 3 computers is 1 cell phone (3 computers/3 computers per cell phone = 1 cell phone). Thus, the best choice is A) 1.
Therefore, the opportunity cost of producing 3 computers is 1 cell phone (3 computers/3 computers per cell phone = 1 cell phone). Thus, the best choice is A) 1.
Learning Objectives
- Understand the concept of opportunity cost when making various trade-offs and how to calculate it in diverse situations.