Keisha can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.The opportunity cost of one unit of Y for Keisha is
A) 5 units of X.
B) 0.2 units of X.
C) 3 units of X.
D) 1/2 unit of X.
E) none of the above

Question

Quizplus · Accepted Answer

The opportunity cost of producing one unit of Y for Keisha can be calculated by looking at the trade-offs between producing X and Y. Moving from producing 100X (and 0Y) to producing 50X (and 30Y) shows that to produce 30Y, Keisha gives up 50X, which means the opportunity cost of 1Y is 50X/30Y = 5/3 units of X. However, this calculation is incorrect based on the provided options and the correct interpretation of the question. The correct approach is to look at the extreme points: moving from 20Y to 40Y, Keisha gives up 100X, so the opportunity cost of 20Y is 100X, or 5X per 1Y (100X/20Y = 5X per Y). This calculation directly matches one of the provided options, indicating a misunderstanding in the initial explanation. The correct interpretation should focus on the direct trade-offs presented in the options, which suggests that for each additional unit of Y produced, there is a specific amount of X that cannot be produced, directly leading to the correct answer without the need for incorrect intermediate steps.

Keisha Can Produce the Following Combinations of X and Y