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 Rich to produce one radio?
A)1/12 TV
B)1/6 TV
C)1/3 TV
D)4 TVs

Question

Quizplus · Accepted Answer

In the time it takes Rich to produce 12 radios, he could have produced 4 TVs, so for every radio he produces, he gives up 1/3 of a TV.

An Economy Has Two Workers, Jen and Rich