Use the information below to answer the following questions.
Fact 2.3.1
In an eight-hour day,Andy can produce either 24 loaves of bread or 8 kilograms of butter.In an eight-hour day,Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
-From Fact 2.3.1,we know that
A)Andy has the lower opportunity cost of producing bread,while Andy and Rolfe have equal opportunity costs of producing butter.
B)Andy has the lower opportunity cost of producing both bread and butter.
C)Andy has the lower opportunity cost of producing bread,while Rolfe has the lower opportunity cost of producing butter.
D)Andy has the lower opportunity cost of producing butter,while Rolfe has the lower opportunity cost of producing bread.
E)Andy has the higher opportunity cost of producing both bread and butter.

Question

Quizplus · Accepted Answer

Andy's opportunity cost of producing bread is 1/3 kilogram of butter per loaf (8 kg of butter / 24 loaves of bread), while Rolfe's is 1 kilogram of butter per loaf (8 kg of butter / 8 loaves of bread), making Andy's opportunity cost lower for bread. For butter, Andy's opportunity cost is 3 loaves of bread per kilogram of butter (24 loaves of bread / 8 kg of butter), while Rolfe's is 1 loaf of bread per kilogram of butter (8 loaves of bread / 8 kg of butter), making Rolfe's opportunity cost lower for butter.

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