A country produces bobblehead dolls and baseball bats using only labor as input. One unit of labor can produce four dolls or two bats. What is opportunity cost of producing bobblehead dolls?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one bobblehead doll is the amount of baseball bats that could have been produced with the same labor. Since one unit of labor can produce four dolls or two bats, producing one doll costs 0.5 bats (2 bats/4 dolls = 0.5 bats per doll).

A Country Produces Bobblehead Dolls and Baseball Bats Using Only