Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus. Table 1.3
Production Possibilities for Brushes and Combs
$$\begin{array} { | l | c | c | r | r | }
\hline \text { Combination } & \begin{array} { c }
\text { Number of } \
\text { combs }
\end{array} & \begin{array} { c }
\text { Opportunity } \
\text { Cost(Foregone } \
\text { brushes) }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { brushes }
\end{array} & \begin{array} { c }
\text { Opportunity Cost } \
\text { (Foregone combs) }
\end{array} \
\hline \mathrm { J } & 4 & & 0 & \text { NA } \
\hline \mathrm { K } & 3 & & 10 & \
\hline \mathrm { L } & 2 & & 17 & \
\hline M & 1 & & 21 & \
\hline \mathrm { N } & 0 & \text { NA } & 23 & \
\hline
\end{array}$$ On the basis of Table 1.3,the highest opportunity cost for brushes in terms of combs is
A)0.10 comb per brush.
B)23 combs per brush.
C)0.50 comb per brush.
D)0.29 comb per brush.

Question

Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X,ceteris paribus. Table 1.3
Production Possibilities for Brushes and Combs
$$\begin{array} { | l | c | c | r | r | } 
\hline \text { Combination } & \begin{array} { c } 
\text { Number of } \
\text { combs }
\end{array} & \begin{array} { c } 
\text { Opportunity } \
\text { Cost(Foregone } \
\text { brushes) }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { brushes }
\end{array} & \begin{array} { c } 
\text { Opportunity Cost } \
\text { (Foregone combs) }
\end{array} \
\hline \mathrm { J } & 4 & & 0 & \text { NA } \
\hline \mathrm { K } & 3 & & 10 & \
\hline \mathrm { L } & 2 & & 17 & \
\hline M & 1 & & 21 & \
\hline \mathrm { N } & 0 & \text { NA } & 23 & \
\hline
\end{array}$$ On the basis of Table 1.3,the highest opportunity cost for brushes in terms of combs is
A)0.10 comb per brush.
B)23 combs per brush.
C)0.50 comb per brush.
D)0.29 comb per brush.

Quizplus · Accepted Answer

The opportunity cost for brushes in terms of combs can be calculated by looking at the change in the number of combs when the production of brushes is increased. From J to K, the production of brushes increases from 0 to 10, while the number of combs decreases from 4 to 3, which is a loss of 1 comb for 10 brushes, or 0.10 comb per brush. From K to L, the production of brushes increases from 10 to 17 (a difference of 7 brushes), while the number of combs decreases from 3 to 2, which is a loss of 1 comb for 7 brushes, or approximately 0.14 comb per brush. From L to M, the production of brushes increases from 17 to 21 (a difference of 4 brushes), while the number of combs decreases from 2 to 1, which is a loss of 1 comb for 4 brushes, or 0.25 comb per brush. The highest opportunity cost is from M to N, where the production of brushes increases from 21 to 23 (a difference of 2 brushes), while the number of combs decreases from 1 to 0, which is a loss of 1 comb for 2 brushes, or 0.50 comb per brush. Therefore, the highest opportunity cost for producing an additional brush in terms of the number of combs forgone is 0.50 comb per brush.

Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes