The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns. TABLE 1-1 Refer to Table 1-1.Which of the following statements about Tristan's and Thomas's opportunity costs is correct?
A)Tristan has a higher opportunity cost of producing mowed lawns.
B)Thomas has a higher opportunity cost of producing mowed lawns.
C)Tristan has a higher opportunity cost of producing fishing lures.
D)Thomas has a higher opportunity cost of producing fishing lures.
E)Both A and D are correct.

Question

The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns.  TABLE 1-1 Refer to Table 1-1.Which of the following statements about Tristan's and Thomas's opportunity costs is correct?
A)Tristan has a higher opportunity cost of producing mowed lawns. 
B)Thomas has a higher opportunity cost of producing mowed lawns. 
C)Tristan has a higher opportunity cost of producing fishing lures. 
D)Thomas has a higher opportunity cost of producing fishing lures. 
E)Both A and D are correct.

Quizplus · Accepted Answer

To determine opportunity cost, we must consider the trade-off between producing two goods. The opportunity cost of producing fishing lures for Tristan is the number of lawns he could have mowed instead. Therefore, his opportunity cost of producing fishing lures is 4 lawns (12 lures/3 lawns). On the other hand, Thomas's opportunity cost of producing fishing lures is 1 lawn (6 lures/6 lawns). Thus, Tristan has a higher opportunity cost of producing fishing lures than Thomas. Similarly, the opportunity cost of producing mowed lawns for Tristan is 1/4 of a lure (12 lures/3 lawns), while for Thomas, it is 1 lure (6 lawns/6 lures). Therefore, Thomas has a higher opportunity cost of producing mowed lawns than Tristan. Thus, option E is the correct choice, as it states that both A and D are correct.

The Table Below Illustrates That,in One Day,Tristan Can Produce Either