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-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing 1 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 question:

-(Table: Comparative Advantage I)Use Table: Comparative Advantage I.The opportunity cost of producing 1 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 of producing 1 box of herring for Finland is calculated by dividing the production of cell phones by the production of herring. Given Finland can produce 10 boxes of cell phones or 50 boxes of herring, the opportunity cost of 1 box of herring is 10/50 = 0.2 boxes of cell phones.

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