Refer to Table 20.5. In Vietnam, the opportunity cost of

A) a lb. of tea is 2/15 of a bushel of cashews.
B) a lb. of tea is 1/8 of a bushel of cashews.
C) a lb. of tea is 40 bushels of cashews.
D) a bushel of cashews is 4/3 of a lb. of tea.

The opportunity cost of a lb. of tea in Vietnam can be calculated by looking at the change in cashews production as tea production decreases. From the table, producing 600 lbs. of tea requires giving up 0 bushels of cashews, and producing 450 lbs. of tea (a decrease of 150 lbs.) requires giving up 20 bushels of cashews. Therefore, the opportunity cost of 1 lb. of tea is 20 bushels of cashews / 150 lbs. of tea = 2/15 of a bushel of cashews.