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    I don't understand how they got those numbers.

    If country A makes 1 palm oil (10000 resources) then it could make 2 televisions with the 10000 resources so surely the opportunity cost is 2? Similarly if they made 1 television then they could make 5000/10000 = 1/2 palm oil with those resources so surely the opportunity cost of making 1 television is 1/2 not 2? Have they got the numbers mixed up or am I getting confused?


    edit: I learnt what I'm doing from this video: http://www.youtube.com/watch?v=Pd_qs...kgehq_WCsk9A7y

    is the video wrong? (skip to 3:02)
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    You got the numbers wrong. They are the amount produced, not the resources required.

    I.e. the country if it just produced palm oil it could do 20000 or it could just produce TVs and produce 10000 - i.e. it can produce 2 palm oil for every 1 TV. So the OC of 1 TV is 2 palm oil. Whereas for 1 palm oil it's 1/2 TVs.
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    (Original post by danny111)
    You got the numbers wrong. They are the amount produced, not the resources required.

    I.e. the country if it just produced palm oil it could do 20000 or it could just produce TVs and produce 10000 - i.e. it can produce 2 palm oil for every 1 TV. So the OC of 1 TV is 2 palm oil. Whereas for 1 palm oil it's 1/2 TVs.
    So silly!

    Thank you.
 
 
 
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