Table 5.1: Table 5.1 shows the number of labor hours required by Andrea and Hector to each produce one bracelet and one tiara.
-Refer to Table 5.1. What is Hector's opportunity cost of producing one bracelet?

Question

Table 5.1:  Table 5.1 shows the number of labor hours required by Andrea and Hector to each produce one bracelet and one tiara.
-Refer to Table 5.1. What is Hector's opportunity cost of producing one bracelet?

Quizplus · Accepted Answer

Opportunity cost is calculated by comparing what is given up to produce one unit of another good. If Hector's opportunity cost of producing one bracelet is 1/5 of a tiara, it means he gives up 1/5 of a tiara for each bracelet produced.

Table 51: Table 5