In New Zealand one worker can produce 40 walking sticks per hour or 10 boomerangs per hour.What is the opportunity cost of producing one walking stick?

Question

Quizplus · Accepted Answer

The opportunity cost of producing one walking stick is the amount of the other good that must be given up to produce it. Since one worker can produce 10 boomerangs per hour or 40 walking sticks per hour, producing one walking stick means giving up 1/4 of a boomerang (10 boomerangs / 40 walking sticks = 1/4 boomerang per walking stick).

In New Zealand One Worker Can Produce 40 Walking Sticks