(Table: Comparative Advantage I) Look at the table Comparative Advantage I.The opportunity cost of producing 1 box of herring for Finland is:
A)10 boxes of cell phones.
B)0.5 boxes of cell phones.
C)5 boxes of cell phones.
D)0.1 cell phone.

Question

Quizplus · Accepted Answer

To calculate the opportunity cost of 1 box of herring for Finland, we need to look at the amount of cell phones that could be produced instead. Finland can either produce 20 boxes of herring or 10 boxes of cell phones. Therefore, the opportunity cost of producing 1 box of herring is 10 boxes of cell phones (since that is what Finland would have to give up to produce 1 box of herring). So, the answer is B.

(Table: Comparative Advantage I) Look at the Table Comparative Advantage