Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-6.The opportunity cost of 1 mixer for Miguel is
A) 1/2 toaster.
B) 1/2 hour of labor.
C) 2 toasters.
D) 8 hours of labor.

Question

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-6.The opportunity cost of 1 mixer for Miguel is
A) 1/2 toaster. 
B) 1/2 hour of labor. 
C) 2 toasters. 
D) 8 hours of labor.

Quizplus · Accepted Answer

According to the table, Miguel can produce either 2 toasters or 1 mixer in a given hour. Therefore, the opportunity cost of producing 1 mixer is giving up the production of 2 toasters. Therefore, the answer is C. Miguel's opportunity cost of producing 1 mixer is 2 toasters.

Table 3-6 Assume That Maya and Miguel Can Switch Between Producing Mixers