Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl's opportunity cost of one truck is ________ cars.

Question

Quizplus · Accepted Answer

Karl produces either 10 cars per hour or 5 trucks per hour. To calculate the opportunity cost of one truck, we need to find out how many cars Karl would have to give up to produce one truck. That would be:

1 truck = 10 cars / 5 trucks

= 2 cars per truck

Therefore, Karl's opportunity cost of one truck is 2 cars.

As for the best choice(s), it would depend on the particular circumstances. However, if we assume that both cars and trucks are equally profitable and in high demand, it would make sense for Karl to focus on producing cars (since his production capacity for cars is higher than for trucks), while Jager focuses on producing trucks (since his production capacity for trucks is higher than for cars). Therefore, the best choice in this case would be:

Answer: Karl should produce cars, while Jager should produce trucks.

Use the Following Scenario to Answer the Following Questions