-In the above figure,Jack's opportunity cost of producing 1 litre of bottled water is ________ of soft drink.
A)1/4 of a litre
B)6 litres
C)2 litres
D)1/2 of a litre
E)1 litre

Question

-In the above figure,Jack's opportunity cost of producing 1 litre of bottled water is ________ of soft drink.
A)1/4 of a litre 
B)6 litres 
C)2 litres 
D)1/2 of a litre 
E)1 litre

Quizplus · Accepted Answer

Opportunity cost is calculated by comparing the trade-offs between two goods. If Jack's opportunity cost of producing 1 litre of bottled water is 1/2 of a litre of soft drink, it means for every litre of bottled water produced, he forgoes producing 1/2 litre of soft drink.

-In the Above Figure,Jack's Opportunity Cost of Producing 1 Litre