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Fact 2.4.2
Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
-Given Fact 2.4.2, the opportunity cost of producing a unit of X is
A)1 unit of Y for Agnes and 2 units of Y for Brenda.
B)1 unit of Y for Agnes and 1/2 unit of Y for Brenda.
C)1 hour for Agnes and 1/2 hour for Brenda.
D)1 hour for Agnes and 2 hours for Brenda.
E)1 hour for Agnes and 1/4 hour for Brenda.

Question

Quizplus · Accepted Answer

Agnes's opportunity cost of producing 1 unit of X is 1 unit of Y (since she can produce either in an hour). Brenda's opportunity cost of producing 1 unit of X is 2 units of Y (since she can produce 2 units of X or 4 units of Y in an hour, so 1 unit of X costs her 2 units of Y).

Use the Information Below to Answer the Following Questions