Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 2 - The Key Principles of Economics - Exercises - 2.1 The Principle of Opportunity Cost - Page 43: 1.5

Answer

The cost of pair of of warships purchased by Malaysia is safe drinking water for 5 million people.

Work Step by Step

The opportunity cost of is what you sacrifice in order to get something else. There is a trade-off for every decision made. For example, in 1992, Malaysia bought 2 warships. With the money they spent on the 2 warships, the country could have built a system to provide safe drinking water for 5 million people. This water system is the opportunity cost for the 2 warships.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.