Bill and Jen are the only two people in an economy.Each has 10 hours in which they can make either croissants, juice or some combination of both products.In takes Bill one hour to make one croissant and one hour to make a litre of juice.It takes Jen 20 minutes to make a croissant and 40 minutes to make a litre of juice.Which statement is true?
A)The opportunity cost for Jen to make a croissant is ½ a litre of juice.
B)The opportunity cost for Jen to make a croissant is 2 litres of juice.
C)The opportunity cost for Jen to make a croissant is 20 minutes.
D)The opportunity cost for Bill to make a croissant is ½ a litre of juice.
E)The opportunity cost for Bill to make a litre of juice is a litre of juice.

Question

Quizplus · Accepted Answer

Jen takes 20 minutes to make a croissant and 40 minutes to make a litre of juice. Therefore, the opportunity cost for Jen to make a croissant is 20/40 = 1/2 a litre of juice.

Bill and Jen Are the Only Two People in an Economy.Each