In New Zealand one worker can produce 40 walking sticks or 10 boomerangs each hour.What is the opportunity cost of producing one walking stick?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one walking stick is the amount of boomerangs that could have been produced instead. Since one worker can produce 10 boomerangs in the time it takes to produce 40 walking sticks, the opportunity cost of one walking stick is 1/4 of a boomerang (10 boomerangs/40 walking sticks = 1/4 boomerang per walking stick).

In New Zealand One Worker Can Produce 40 Walking Sticks