Answer:
100 bed linens
Step-by-step explanation:
Opportunity costs of South Korea:
- Computer chips = 100 chips / 12 hours of labor = 8.33 computer chips per hour of labor.
- Bed linens = 50 chips / 6 hours of labor = 8.33 bed linens per hour of labor.
Since both products require the same amount of labor hours (8.33 labor hours per unit), then the opportunity cost of producing 100 computer chips is 100 bed linens.
Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another alternative.