Amy must give up the production of 100 ties to produce 50 additional dress shirts. The opportunity cost of producing four dress shirts is _____ ties.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one dress shirt is 2 ties (100 ties / 50 dress shirts). Therefore, the opportunity cost of producing four dress shirts is 4 dress shirts * 2 ties/dress shirt = 8 ties.

Amy Must Give Up the Production of 100 Ties to Produce