-Jane produces only corn, measured in tons, and cloth, measured in bolts. For her, the opportunity cost of one more ton of corn is
A) the same as the opportunity cost of one more bolt of cloth.
B) the inverse of the opportunity cost of one more bolt of cloth.
C) the ratio of all the bolts of cloth she produces to all the tons of corn she produces.
D) the ratio of all the tons of corn she produces to all the bolts of cloth she produces.

Question

-Jane produces only corn, measured in tons, and cloth, measured in bolts. For her, the opportunity cost of one more ton of corn is
A) the same as the opportunity cost of one more bolt of cloth. 
B) the inverse of the opportunity cost of one more bolt of cloth. 
C) the ratio of all the bolts of cloth she produces to all the tons of corn she produces. 
D) the ratio of all the tons of corn she produces to all the bolts of cloth she produces.

Quizplus · Accepted Answer

The opportunity cost of one more ton of corn is the amount of cloth she has to give up to produce that extra ton. Since opportunity cost is reciprocal, the opportunity cost of one more bolt of cloth is the inverse of the opportunity cost of one more ton of corn.

-Jane Produces Only Corn, Measured in Tons, and Cloth, Measured