Question

lhis Quiz: 10 pts possib One Wristwatch Rice (per pound) Japan Thailand 2 hours 1.5 hours 30 hours The table above shows the number of labor hours required to produce a wristwatch and a pound of rice in Japan and Thailand. What is Japan's opportunity cost of producing one wristwatch? 0 A. 004 pounds of rice O B. 4 pounds of rice C. 25 pounds of rice O D. 40 pounds of rice Click to select your answer /23/20192 O Type here to search ns End

Answer 1

Japan opportunity cost of producing one wristwatch :

50 hours - one wrist watch

2 hours - rice per pound

It means,

In one hour japan can produce 1/50 wrist watch and

In one hour Japan can produce 1/2 pound of rice.

opportunity cost of produce 1/50 wrist watch is 1/2 pound of rice

so,

opportunity cost of producing 1 wristwatch is 50*(1/2) = 25 pound of rice.

Ans is C) 25 pound of rice.