Use the information below to answer the following questions.
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 Y 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 unit of X for Agnes and 1/2 unit of X for Brenda.

Question

Quizplus · Accepted Answer

Agnes gives up 1 unit of X to produce 1 unit of Y, so her opportunity cost is 1 unit of X. Brenda gives up 2 units of X to produce 4 units of Y, so her opportunity cost per unit of Y is 1/2 unit of X.

Use the Information Below to Answer the Following Questions