use the figure below to answer the following questions : the figure depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.

-What is Bo's opportunity cost of making 1 stromboli?
A) 1/2 pizza
B) 2/3 pizza
C) 2 pizzas
D) 2 stromboli
E) 25 pizzas

Question

use the figure below  to answer the following questions : the figure depict the production possibilities frontiers (PPFs)for two people who can allocate the same amount of time between making pizzas and making stromboli.
 
-What is Bo's opportunity cost of making 1 stromboli?
A) 1/2 pizza 
B) 2/3 pizza 
C) 2 pizzas 
D) 2 stromboli 
E) 25 pizzas

Quizplus · Accepted Answer

To find Bo's opportunity cost of making 1 stromboli, we can look at the slope of his PPF. The slope represents how much pizza he has to give up to produce an additional stromboli. From the graph, we can see that Bo's PPF has a slope of -1/2, meaning he has to give up 1/2 pizza to produce an additional stromboli. Therefore, the answer is A) 1/2 pizza.

Answer: A
 The best choice for Bo depends on his preferences and what he values more - making pizzas or making stromboli. If Bo prefers making pizzas, his best choice would be along his PPF where he produces more pizzas and fewer stromboli. If he values making stromboli more, his best choice would be along his PPF where he produces more stromboli and fewer pizzas. If Bo is indifferent between making pizzas and stromboli, he could choose any point on his PPF.

Use the Figure Below to Answer the Following Questions