In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, John can produce either 8 loaves of bread or 8 pounds of butter. The opportunity cost of producing 1 pound of butter is
A)1\3 hour for Andy and 1 hour for John.
B)1 hour for Andy and 1 hour for John.
C)3 loaves of bread for Andy and 1 loaf of bread for John.
D)1\3 loaves of bread for Andy and 1 loaf of bread for John.

Question

Quizplus · Accepted Answer

The opportunity cost for Andy is 3 loaves of bread (24 loaves/8 pounds), and for John, it is 1 loaf of bread (8 loaves/8 pounds) per pound of butter.

In an Eight-Hour Day, Andy Can Produce Either 24 Loaves