3. Answer is A. It does face a tradeoff because while producing 8 shows a week the island is using 40 hours of labour. It is now left with 10 hours. In these 10 hours it can produce only 5 good food meals. Thus if it would like to increase good food meals, it has to sacrifice some unit of entertainment show.
4. Opportunity cost: what you sacrifice / what you gain
= 3/2 = 1.5
We can see that 4 shows were produced by using 20 hours of labour and 12 good food meals were produced using 30 hours of labour. Now if we want to produce 2 additional hours of shows, we have to utilise additional 10 hours. Thus we have to sacrifice 10 hours from good food meals. While sacrificing 10 hours in meals, we are sacrificing total 3 units and are gaining 2 units of shows. Thus opportunity cost is 1.5 (as solved above)
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