Antonio and Elyse are two woodworkers who both make kitchen cabinets and bathroom vanities. In one month, Antonio can make 12 kitchen cabinets or 36 bathroom vanities, where Elyse can make 10 kitchen cabinets or 50 bathroom vanities. What is the opportunity cost of 1 bathroom vanity?

Question

Quizplus · Accepted Answer

The opportunity cost of producing 1 bathroom vanity for Antonio is 1/36 of a kitchen cabinet, since he can make 36 bathroom vanities instead of 12 kitchen cabinets in the same amount of time. This simplifies to 1/3 of a kitchen cabinet. For Elyse, the opportunity cost of producing 1 bathroom vanity is 1/50 of a kitchen cabinet, since she can make 50 bathroom vanities instead of 10 kitchen cabinets. This simplifies to 1/5 of a kitchen cabinet. Therefore, the correct answer is 1/3 kitchen cabinet for Antonio and 1/5 kitchen cabinet for Elyse.

Antonio and Elyse Are Two Woodworkers Who Both Make Kitchen