In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one statue is
A)1/2 of a vase
B)1/8 of a vase
C)8 vases
D)16 vases
E)2 vases

Question

Quizplus · Accepted Answer

To determine the opportunity cost of one statue, we need to find how many vases one could produce in the time it takes to produce one statue.

Let's start by finding the production rate of one worker per hour:

- 1/8 vase per hour + 1/16 statue per hour = 2/16 vase per hour + 1/16 vase per hour = 3/16 vase per hour

Now let's find the time it takes for 400 workers to produce one statue:

- 1 statue / (400 workers x 1/16 statue per hour) = 16 hours

So in 16 hours, 400 workers could produce either:

- 16 x (400 workers x 1/8 vase per hour) = 800 vases 
- 1 statue and (16 x (400 workers x 1/8 vase per hour)) = 1 statue and 800 vases

Therefore, the opportunity cost of one statue is 800 vases, or 2 vases per statue.

Therefore, the best choice is E.

In a Mexican Factory,each Worker Can Produce 1/8 of a Vase