Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\
\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \
\hline \text { Lee } & 6 & 10 & 15 & 4 \
\hline \text { John } & 3 & 20 & 15 & 4\\hline
\end{array}$
-Refer to Table 3-2.For John the opportunity cost of one kg of rice:
A)3/4 kg of butter
B)3/2 kg of butter
C)4/3 kg of butter
D)2/3 kg of butter

Question

Table 3-2
 $\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\
\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \
\hline \text { Lee } & 6 & 10 & 15 & 4 \
\hline \text { John } & 3 & 20 & 15 & 4\\hline
\end{array}$
-Refer to Table 3-2.For John the opportunity cost of one kg of rice:
A)3/4 kg of butter
B)3/2 kg of butter
C)4/3 kg of butter
D)2/3 kg of butter

Quizplus · Accepted Answer

The opportunity cost of one kg of rice is 3/4 kg of butter. This is because, according to Table 3-2, John can produce either 4 kg of rice or 3 kg of butter with the same amount of resources. Therefore, if he chooses to produce one kg of rice, he must give up the opportunity to produce 3/4 kg of butter.

Table 3-2 -Refer to Table 3-2