Table 2-7

Table 2-7 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 2-7.What is Barney's opportunity cost of making a pogo stick?
A)1/2 of a unicycle
B)2 unicycles
C)1/3 of a unicycle
D)1.4 pogo sticks

Question

Table 2-7
  
Table 2-7 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 2-7.What is Barney's opportunity cost of making a pogo stick?
A)1/2 of a unicycle 
B)2 unicycles 
C)1/3 of a unicycle 
D)1.4 pogo sticks

Quizplus · Accepted Answer

Barney's opportunity cost of making a pogo stick is the amount of unicycles he forgoes. If Barney can make 2 pogo sticks for every unicycle, then the opportunity cost of making one pogo stick is 1/2 of a unicycle.

Table 2-7 Table 2-7 Shows the Output Per Month of Two People