Table 2-6

Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.What is Haley's opportunity cost of making a necklace?
A)3/4 of a bracelet
B)3 bracelets
C)1 1/3 necklaces
D)2 necklaces

Question

Table 2-6
  
Table 2-6 shows the output per week of two jewelers, Serena and Haley. They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2-6.What is Haley's opportunity cost of making a necklace?
A)3/4 of a bracelet 
B)3 bracelets 
C)1 1/3 necklaces 
D)2 necklaces

Quizplus · Accepted Answer

Haley's opportunity cost of making a necklace is the amount of bracelets she could have made during that time. 
From the table, we see that Haley can make 4 bracelets in the same amount of time it takes her to make 3 necklaces. 
Therefore, her opportunity cost of making a necklace is 3/4 of a bracelet.

As for the best choice(s), it depends on the jeweler's goals and preferences. 
If Serena wants to maximize her output of bracelets, she should only make bracelets and produce 6 bracelets per week. 
If Haley wants to maximize her output of necklaces, she should only make necklaces and produce 4 necklaces per week. 
If they both want to maximize their combined output, they should specialize in their respective comparative advantages. 
Serena should make bracelets (since she can produce more bracelets per week than necklaces) and Haley should make necklaces (since she can produce more necklaces per week than bracelets). 
Together, they can produce 6 bracelets and 4 necklaces per week.

Table 2-6 Table 2-6 Shows the Output Per Week of Two Jewelers