Question

If the planet of Nevarro utilizes all of their resources to make spaceships, they can make 4,000 spaceships per year. If they instead utilize all of their resources to make robots, they can make 12,000 per year. What is the opportunity cost of making a robot in Tatooine?

MCQ Options:
a. 4,000 spaceships
b. 12,000 spaceships
c. The cost of making robots
d. The cost of making spaceships

Answer 1

d. The cost of making spaceships

The opportunity cost of making a robot in Nevarro is the cost of making spaceships.

Step-by-step explanation:

The opportunity cost of making a robot in Nevarro is the cost of making spaceships. Opportunity cost refers to the value of the next best alternative that is forgone when making a decision. In this case, if Nevarro chooses to make robots instead of spaceships, they would have to give up the production of spaceships, resulting in a loss of 4,000 spaceships per year.