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If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
Required:
a. What is the opportunity cost of producing 1 unit of fish in Islandia?
b. What is the opportunity cost of producing 1 unit of coconuts in Islandia?
c. What is the opportunity cost of producing 1 unit of fish in Mountania?
d. What is the opportunity cost of producing 1 unit of coconuts in Mountania?
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