Use the information below to answer the following questions.
Fact 2.4.1
In one hour, Sue can produce 50 caps or 10 jackets, and Tessa can produce 70 caps or 7 jackets.
-Refer to Fact 2.4.1. Sue's opportunity cost of producing a cap is ________ jackets and Tessa's opportunity cost of producing a cap is ________ jackets.
A)10; 7
B)5; 10
C)0.1; 0.2
D)0.2; 0.1
E)10; 5

Question

Quizplus · Accepted Answer

Sue's opportunity cost of producing a cap is 10/50 or 0.2 jackets. 
Tessa's opportunity cost of producing a cap is 7/70 or 0.1 jackets. 
Therefore, the best choice is to have Tessa produce caps and Sue produce jackets since Tessa has a lower opportunity cost for producing caps.

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