Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-Refer to Graph 3-1.For Friday, the opportunity cost of 1 kg of fish is:
A)1 kg of coconuts
B)3/2 kg of coconuts
C)1/3 kg of coconuts
D)2 kg of fish

Question

Graph 3-1

These figures illustrate the production possibilities frontiers for Robinson Crusoe and Friday with 12 hours of labour.
-Refer to Graph 3-1.For Friday, the opportunity cost of 1 kg of fish is:
A)1 kg of coconuts 
B)3/2 kg of coconuts 
C)1/3 kg of coconuts 
D)2 kg of fish

Quizplus · Accepted Answer

The opportunity cost of 1 kg of fish is the amount of coconuts that could have been produced instead. From the graph (not visible here, but based on the question), if producing 1 kg of fish means giving up 3/2 kg of coconuts, then the opportunity cost of 1 kg of fish is 3/2 kg of coconuts.

Graph 3-1 These Figures Illustrate the Production Possibilities Frontiers for Robinson Crusoe