00:01
Okay, so we're trying to fill in correct answers, right? okay, so what is opportunity cost? opportunity cost is basically what you give up.
00:15
So that can be time, money, a book somehow if you choose to go to a book over reading.
00:25
Sorry, that made no sense.
00:26
If you choose to go to a movie over reading a book, for example, when you choose something over something else.
00:40
Okay, so in this case, for country a, opportunity cost of producing 16 units of petroleum is 8 units of seafood.
01:02
See, because they basically have the choice between producing 18, sorry, 16 units of petroleum with one cost unit or 8 units of seafood.
01:13
So when they produce 16 units of petroleum, they give up producing 8 units of seafood.
01:19
Food.
01:20
For country b, the opportunity cost of producing eight units of petroleum is eight units of seafood...