Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month.
A)Katie's opportunity cost of producing 1 jar of pickles is 1/2 of a pie.
B)Hugh's and Katie's opportunity costs of producing are the same.
C)Katie's opportunity cost of producing 1 jar of pickles is 2 pies.
D)Hugh's opportunity cost of producing 1 pie is 1/4 jar of pickles.
E)Hugh's opportunity cost of producing 1 jar of pickles is 4 pies.

Question

Quizplus · Accepted Answer

Katie's opportunity cost of producing 1 jar of pickles is 1/2 of a pie because she gives up 100 pies to produce 200 jars of pickles, so for each jar, she gives up 0.5 pies.

Katie and Hugh Are Producing Pies and Jars of Pickles