Table 2-17
Table 2-17 shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-17. What is Lucy's opportunity cost of making a tricycle?
A) 3/4 of a wagon
B) 3 wagons
C) 1 1/3 tricycles
D) 2 tricycles

Question

Table 2-17
  Table 2-17 shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-17. What is Lucy's opportunity cost of making a tricycle?
A) 3/4 of a wagon 
B) 3 wagons 
C) 1 1/3 tricycles 
D) 2 tricycles

Quizplus · Accepted Answer

Lucy's opportunity cost of making a tricycle is the amount of wagons she could have made instead. If she can make 4 tricycles or 3 wagons, then for each tricycle, she gives up 3/4 of a wagon.

Table 2-17 Table 2-17 Shows the Output Per Week of Week