Use the following table to determine the answer.
Tablets/Laptops
250 50
200 60
150 70
100 80
50 90
The table shows the production possibilities for a technology company that produces both tablets and laptops that utilize the same resources. What is the opportunity cost of producing a single laptop?
A. The opportunity cost of producing 1 laptop is 1/5 of a tablet
B. The opportunity cost of producing 1 laptop is 5 tablets
C. The opportunity cost of producing 1 laptop is 50 tablets
D. The opportunity cost of producing 1 laptop is 10 tablets
To determine the opportunity cost of producing a single laptop, we need to look at the trade-off between tablets and laptops. According to the table, the company can produce 50 tablets if it chooses to produce no laptops, and it can produce 250 tablets if it chooses to produce no laptops.
The difference between these two production levels is 250 - 50 = 200 tablets. This means that if the company chooses to produce one laptop, it has to give up the production of 200 tablets. Therefore, the opportunity cost of producing a single laptop is 200 tablets.
Thus, the correct answer is D. The opportunity cost of producing 1 laptop is 10 tablets.