Table 2.4

Table 2.4 shows the output per week of two jewellers, Sabrina and Holly. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4. What is Sabrina's opportunity cost of making a bracelet?
A)1 1/3 necklaces
B)1/2 of a bracelet
C)1/2 of a necklace
D)3/4 of a bracelet

Question

Table 2.4
  
Table 2.4 shows the output per week of two jewellers, Sabrina and Holly. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4. What is Sabrina's opportunity cost of making a bracelet?
A)1 1/3 necklaces 
B)1/2 of a bracelet 
C)1/2 of a necklace 
D)3/4 of a bracelet

Quizplus · Accepted Answer

Opportunity cost is defined as the value of the next best alternative forgone as the result of making a decision. In this case, if Sabrina makes a bracelet, she gives up the opportunity to make 1 1/3 necklaces, which is her opportunity cost.

Table 2.4 Table 2.4 Shows the Output Per Week of Two Jewellers