Answer: 2 units of rice
Explanation:
Opportunity cost simply means the real cost of something else that we forgo or benefit lost. .
a) Based on the information given above, the opportunity cost of producing lumber with regards to the units of rice will be:
= 100/300
= 1/3 units of rice
This means that 1/3 unit of rice will be given up for every 1 unit of lumber
To increase its lumber production by 6 units, then the units of rice that'll be sacrificed will be:
= 6 × 1/3
= 2 units of rice
Therefore, country faces an opportunity cost of 2 units of rice.
