Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. What is Barney's opportunity cost of making a unicycle?
A)1/2 pogo stick
B)2 pogo sticks
C)1.75 unicycles
D)2.8 pogo sticks

Question

Table 2.5
  
Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. What is Barney's opportunity cost of making a unicycle?
A)1/2 pogo stick 
B)2 pogo sticks 
C)1.75 unicycles 
D)2.8 pogo sticks

Quizplus · Accepted Answer

Barney's opportunity cost of making a unicycle is the number of pogo sticks he could have made instead. In this case, if he chooses to make a unicycle, he gives up making 2 pogo sticks (9-7=2). Therefore, the best choice would be for Barney to make pogo sticks as it has a lower opportunity cost.

Table 2.5 Table 2.5 Shows the Output Per Month of Two People