Table 3.3

-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one hair pin is
A) 1/3 of a bandana.
B) 2.5 bandanas.
C) 3 bandanas.
D) 10 bandanas.

Question

Table 3.3
 
-Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Mia's opportunity cost of producing one hair pin is
A) 1/3 of a bandana. 
B) 2.5 bandanas. 
C) 3 bandanas. 
D) 10 bandanas.

Quizplus · Accepted Answer

Mia's opportunity cost of producing one hair pin is the amount of bandanas that she could have produced in the time it takes her to produce one hair pin. From the table, we see that Mia can produce 3 bandanas in 1 hour, while it takes her 1/3 of an hour to produce 1 hair pin. Therefore, her opportunity cost of producing one hair pin is 1/3 of 3 bandanas, which is one bandana. Thus, the answer is A) 1/3 of a bandana.

Table 3.3 -Consider Two Individuals, Nigel and Mia, Who Produce Hair Pins