Use the table below to answer the following questions.
Table 2.4.2
Production for one week by Sheila and Bruce

-Given the information in Table 2.4.2,which one of the following is true?
A)Sheila should specialize in good X.
B)Bruce should specialize in good X.
C)The opportunity cost to Bruce of an additional unit of X is 0.4 units of Y.
D)A and B.
E)B and C.

Question

Use the table below to answer the following questions.
Table 2.4.2
Production for one week by Sheila and Bruce
 
-Given the information in Table 2.4.2,which one of the following is true?
A)Sheila should specialize in good X. 
B)Bruce should specialize in good X. 
C)The opportunity cost to Bruce of an additional unit of X is 0.4 units of Y. 
D)A and B. 
E)B and C.

Quizplus · Accepted Answer

According to the table, Bruce has a lower opportunity cost of producing good X compared to Sheila (0.4 units of Y vs. 0.5 units of Y). Therefore, Bruce should specialize in producing good X. Additionally, the opportunity cost to Bruce of producing an additional unit of X is 0.4 units of Y (as he would have to give up producing 0.4 units of Y to produce one more unit of X), which is option C. Therefore, the correct answer is E, B and C. Option A is incorrect because Sheila has a higher opportunity cost of producing good X, so she should specialize in producing good Y.

Use the Table Below to Answer the Following Questions