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Table: Automobile and Light SUV Production 1 Automobile 1 Light SUV South Korean labor units 15 18
Table: Automobile and Light SUV Production 1 Automobile 1 Light SUV South Korean labor units 15 18U.S. labor units 24 20 According to the table on automobile and light SUV production, the opportunity cost of producing one automobile is: a. 6/5 light SUVs for the United States, and 5/6 of one light SUV for South Korea
b. 6 light SUVs for the United States, and 5 light SUVs for South Korea c. 5/6 of one light SUV for the United States, and I light SUV for South Korea. d. 4 light SUVs for the United States, and 5/4 light SUVs for South Korea
Final answer:Theopportunity costof producing one automobile is 5/6 of one light SUV for both the United States and South Korea.Explanation:The opportunity cost of producing one automobile can be calculated by comparing the number of light SUVs that could have been produced instead with the same amount of labor. In the given table, the South Korean labor units required to produce one automobile is 15, while for the United States it is 24. Similarly, for light SUVs, the South Korean labor units required is 18, while for the United States it is 20.To calculate the opportunity cost for producing one automobile, we compare the labor units required for each country. For the United States, the opportunity cost is 20/24 = 5/6 of one light SUV. For South Korea, the opportunity cost is 15/18 = 5/6 of one light SUV.Therefore, the correct answer is option c. The opportunity cost of producing one automobile is5/6 of one light SUV for the United States and 5/6 of one light SUV for South Korea.Learn more about Opportunity Cost here:brainly.com/question/12121515#SPJ1...