Consider the following scenario to answer the following questions: Kukla makes tables,with an opportunity cost of 3 rugs per every 4 tables.Zola makes rugs,with an opportunity cost of 2 tables per every 3 rugs.
-Ollie proposes that Kukla give Zola 1 table in exchange for 2 rugs.What are Kukla's and Zola's reactions?
A) Kukla likes the proposal,but Zola does not.
B) Zola likes the proposal,but Kukla does not.
C) Kukla and Zola both like the proposal.
D) Neither Kukla nor Zola likes the proposal.
E) Ollie's proposal is not feasible.

Question

Quizplus · Accepted Answer

Kukla's opportunity cost for 1 table is 0.75 rugs (3 rugs for 4 tables), so getting 2 rugs for 1 table is a good deal. Zola's opportunity cost for 2 rugs is 1.33 tables (2 tables for 3 rugs), so giving away 2 rugs for only 1 table is not beneficial.

Consider the Following Scenario to Answer the Following Questions: Kukla