Table 2-10
Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. What is Fred's opportunity cost of making a pogo stick?
A) 1/3 of a unicycle
B) 3 unicycles
C) 6/7 of a pogo stick
D) 1/2 of a unicycle

Question

Table 2-10
  Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. What is Fred's opportunity cost of making a pogo stick?
A) 1/3 of a unicycle 
B) 3 unicycles 
C) 6/7 of a pogo stick 
D) 1/2 of a unicycle

Quizplus · Accepted Answer

Fred's opportunity cost of making a pogo stick is the amount of unicycles he forgoes. If Fred can make 3 pogo sticks for every unicycle, then the opportunity cost of one pogo stick is 1/3 of a unicycle.

Table 2-10 Table 2-10 Shows the Output Per Month of Month