Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate.
Labor Hours
Needed to Make 1
Cooler Radio
Aruba 2 5
Iceland 1 4
Suppose Aruba decides to increase its production of radios by 10. What is the opportunity cost of this decision?
a. 0.25 coolers
b. 2.5 coolers
c. 4 coolers
d. 25 coolers