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 Andrea'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 Andrea's opportunity cost of producing one bracelet?

Quizplus · Accepted Answer

The opportunity cost of producing one bracelet is the amount of tiaras Andrea foregoes. If Andrea can produce 6 tiaras in the time it takes to produce one bracelet, the opportunity cost is 1/6 of a tiara per bracelet.

Table 51: Table 5