An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one TV?
A)1/5 radio
B)1/3 radio
C)5 radios
D)10 radios

Question

Quizplus · Accepted Answer

In the time it takes Jen to produce 2 TVs, she could have produced 10 radios, so for each TV she produces, she gives up 5 radios.

An Economy Has Two Workers, Jen and Rich