Figure 3-7

-Refer to Figure 3-7.The opportunity cost of 1 cup for Bintu is
A) 1/8 bowl.
B) 1/4 bowl.
C) 4 bowls.
D) 8 bowls.

Question

Figure 3-7
 
-Refer to Figure 3-7.The opportunity cost of 1 cup for Bintu is
A) 1/8 bowl. 
B) 1/4 bowl. 
C) 4 bowls. 
D) 8 bowls.

Quizplus · Accepted Answer

The opportunity cost is the amount of one product that must be given up to produce one unit of another product. In this case, Bintu’s opportunity cost for 1 cup is the amount of soup she could make with the same amount of milk that would be used to make 1 cup. From the chart, we see that Bintu can make 2 bowls of soup with 1 cup of milk. Therefore, the opportunity cost of 1 cup for Bintu is 1/2 bowl. Option B is the best choice as it correctly represents Bintu's opportunity cost.

Figure 3-7 -Refer to Figure 3-7.The Opportunity Cost of 1 Cup for of 1