Jason produces more jeans than Jasmine. Why would Jason and Jasmine want Jasmine to produce the jeans even when they both know that he can produce more than she can at a faster rate?

Question

Quizplus · Accepted Answer

The concept of opportunity cost describes the cost of one production choice in terms of the opportunity forgone to produce something else. In this scenario, even though Jason can produce more jeans at a faster rate, he may have a higher opportunity cost for doing so. This could be because he could use his time and resources more productively in another endeavor that has a higher opportunity cost. Jasmine, on the other hand, may have a relatively lower opportunity cost for producing jeans, so it makes more sense for her to produce them even if she is not as efficient as Jason. Therefore, Option A is the correct answer.

Jason Produces More Jeans Than Jasmine