Table 2-18
Table 2-18 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas.
-Refer to Table 2-18. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella
B) 1/4 of an umbrella
C) 4 umbrellas
D) 10 umbrellas

Question

Table 2-18
  Table 2-18 shows the output per week of two people, Minnie and Mickey. They can either devote their time to making hats or making umbrellas.
-Refer to Table 2-18. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella 
B) 1/4 of an umbrella 
C) 4 umbrellas 
D) 10 umbrellas

Quizplus · Accepted Answer

Opportunity cost is calculated by comparing what is given up to produce one good over another. If Minnie can produce 4 hats or 1 umbrella, the opportunity cost of making one hat is 1/4 of an umbrella.

Table 2-18 Table 2-18 Shows the Output Per Week of Week