Figure 3-3

-Refer to Figure 3-3.The opportunity cost of 1 pair of tap shoes for Fred is
A)1/3 pair of ballet slippers.
B)1/5 pair of ballet slippers.
C)3/5 pair of ballet slippers.
D)5/3 pairs of ballet slippers.

Question

Figure 3-3
 
-Refer to Figure 3-3.The opportunity cost of 1 pair of tap shoes for Fred is
A)1/3 pair of ballet slippers. 
B)1/5 pair of ballet slippers. 
C)3/5 pair of ballet slippers. 
D)5/3 pairs of ballet slippers.

Quizplus · Accepted Answer

The opportunity cost is calculated by comparing the trade-off between producing tap shoes and ballet slippers. If Fred gives up 3 ballet slippers to produce 5 tap shoes, the opportunity cost of 1 tap shoe is 3/5 of a ballet slipper.

Figure 3-3 -Refer to Figure 3-3.The Opportunity Cost of 1 Pair of of 1