Finaing Opportunity Cost
\begin{tabular}{|l|l|l|l|}
\hline Country & Cost (units) & \multicolumn{2}{|c|}{Production choices} \\
\hline & & Petroleum (units) & Seafood (units) \\
\hline Country A & 1 & 16 & 8 \\
\hline Country B & 1 & 8 & 8 \\
\hline
\end{tabular}
Fill in each blank with the correct number from the table.
Based on the data in the table, the opportunity cost for Country A to produce 16 units of petroleum is
$\square$ units of seafood.
The opportunity cost for Country B to produce 8 units of petroleum is $\square$ units of seafood.
Answer (1)
Country A gives up 8 units of seafood to produce 16 units of petroleum.
Country B gives up 8 units of seafood to produce 8 units of petroleum.
The opportunity cost for Country A to produce 16 units of petroleum is 8 units of seafood.
The opportunity cost for Country B to produce 8 units of petroleum is 8 units of seafood. Therefore, the answers are 8 and 8 .
Explanation
Analyzing the Table Let's analyze the given table to determine the opportunity costs for Country A and Country B.
Opportunity Cost for Country A For Country A, the table shows that it can produce either 16 units of petroleum or 8 units of seafood. This means that if Country A decides to produce 16 units of petroleum, it forgoes the opportunity to produce 8 units of seafood. Therefore, the opportunity cost for Country A to produce 16 units of petroleum is 8 units of seafood.
Opportunity Cost for Country B For Country B, the table shows that it can produce either 8 units of petroleum or 8 units of seafood. This means that if Country B decides to produce 8 units of petroleum, it forgoes the opportunity to produce 8 units of seafood. Therefore, the opportunity cost for Country B to produce 8 units of petroleum is 8 units of seafood.
Final Answer Based on our analysis, the opportunity cost for Country A to produce 16 units of petroleum is 8 units of seafood, and the opportunity cost for Country B to produce 8 units of petroleum is 8 units of seafood.
Examples
Understanding opportunity cost is crucial in making informed decisions in everyday life. For example, if you have to choose between spending your afternoon studying for a test or going to a movie, the opportunity cost of going to the movie is the potential grade improvement you would have gained by studying. Similarly, countries face these trade-offs when deciding what to produce with their limited resources. By understanding opportunity costs, both individuals and countries can make better decisions that maximize their benefits.
