Table 18.3
-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 18.3. Nigel's opportunity cost of producing one bandana is

Question

Quizplus · Accepted Answer

To find Nigel's opportunity cost of producing one bandana, we need to compare the productivity of producing bandanas and hair pins. Nigel's productivity for bandanas is 2 per hour, while for hair pins it is 5 per hour. Therefore, Nigel's productivity ratio for bandanas to hair pins is 2:5, which can be simplified to 2/5. So, Nigel's opportunity cost of producing one bandana is 2/5 of a hair pin.

Table 18.3 -Consider Two Individuals, Nigel and Mia, Who Produce Hair Pins