Fill in each blank with the correct number from the table.
| Country | Cost (units) | Production choices |
| :-------- | :----------- | :------------------------ |
| | | Petroleum (units) | Seafood (units) |
| Country A | 1 | 16 | 8 |
| Country B | 1 | 8 | 8 |
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 petroleum is $\square$ units of seafood.
Answer (2)
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.
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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, producing 16 units of petroleum means they forgo 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, producing 8 units of petroleum means they forgo 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 calculations, 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 instance, if you have time to either study for an exam or work a part-time job, calculating the opportunity cost helps you decide how to allocate your time. If studying leads to a better grade and future opportunities, the opportunity cost of working might be too high. Similarly, businesses use opportunity cost to decide which projects to invest in, ensuring they choose the most profitable options.
Country A gives up 8 units of seafood to produce 16 units of petroleum, making the opportunity cost 8 units of seafood. Similarly, Country B gives up 8 units of seafood to produce 8 units of petroleum, resulting in the same opportunity cost of 8 units of seafood.
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