Table 9-2

Sarita and Gabriel own S&G Bakery. Table 9-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 9-2.Select the statement that accurately interprets the data in the table.
A)Sarita has a greater opportunity cost than Gabriel for baking cakes.
B)Sarita's opportunity cost for baking cakes is less than Gabriel's.
C)Gabriel has a greater opportunity cost than Sarita for baking pies.
D)Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

Question

Table 9-2
  
Sarita and Gabriel own S&G Bakery. Table 9-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 9-2.Select the statement that accurately interprets the data in the table.
A)Sarita has a greater opportunity cost than Gabriel for baking cakes. 
B)Sarita's opportunity cost for baking cakes is less than Gabriel's. 
C)Gabriel has a greater opportunity cost than Sarita for baking pies. 
D)Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that must be forgone to pursue a certain action. In this case, Sarita can bake 3 pies or 2 cakes in a day, while Gabriel can bake 2 pies or 3 cakes in a day. Therefore, Sarita has a lower opportunity cost for baking cakes, meaning she is giving up less in terms of pie production to bake cakes, compared to Gabriel.

Table 9-2 Sarita and Gabriel Own S&G Bakery. Table 9-2 Lists the Bakery