Use the following scenario to answer the next questions:
Natasha can produce either 5,000 pounds of cheese or 20 houses per year. Jameson can produce either 5,000 pounds of cheese or 10 houses per year.
-Natasha's opportunity cost of producing one house is ______pound(s) of cheese.

Question

Quizplus · Accepted Answer

Natasha's opportunity cost of producing one house is the amount of cheese she gives up to produce that house. Since she can produce 5,000 pounds of cheese or 20 houses in a year, for every house she produces, she gives up 5,000/20 = 250 pounds of cheese.

Use the Following Scenario to Answer the Next Questions