A country produces bobblehead dolls and baseball bats using only labor as input. One unit of labor can produce four dolls or two bats. What is opportunity cost of producing baseball bats?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one baseball bat is the amount of the other good that could have been produced with the same resources. Since one unit of labor can produce two bats or four dolls, the opportunity cost of producing one bat (using half a unit of labor) is two dolls (half of the four dolls that could have been produced with one unit of labor).

A Country Produces Bobblehead Dolls and Baseball Bats Using Only