If Libby can produce 20 gallons of beer or 5 gallons of wine per hour, her opportunity cost of one gallon of beer is 4 gallons of wine.

Name: If Libby can produce 20 gallons of beer or 5 gallons of wine per hour, her opportunity cost of one gallon of beer is 4 gallons of wine.
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The opportunity cost of producing one gallon of beer is 1/4 gallon of wine, since she can produce 5 gallons of wine in the time it takes to produce 20 gallons of beer.

If Libby Can Produce 20 Gallons of Beer or 5