A small island economy can produce either 100 coconuts or 50 fish each week. If the island decides to produce 80 coconuts, how many fish will they have to sacrifice, and what does this illustrate about opportunity cost?

In this small island economy, producing either 100 coconuts or 50 fish shows that there is a limit to what can be made in a week. If the island decides to produce 80 coconuts, it can no longer produce as many fish. To find out how many fish they will have to sacrifice, we can see that producing 100 coconuts means giving up 50 fish, so producing 80 coconuts means sacrificing 20 fish. This situation illustrates the concept of opportunity cost, which is the value of what you give up when you choose one option over another. In this case, by choosing to produce 80 coconuts, the island gives up the chance to catch 20 fish, showing that every choice has a cost.