Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. $$\begin{array} { | l | r | r | }
\hline & \text { Calculatars Per Haur } & \text { Camputers Per Haur } \
\hline \text { Brith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$
The opportunity cost of making a calculator for Smith is ________ and for Jones it is ________.

Question

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. $$\begin{array} { | l | r | r | } 
\hline & \text { Calculatars Per Haur } & \text { Camputers Per Haur } \
\hline \text { Brith } & 100 & 10 \
\hline \text { Jones } & 120 & 6 \
\hline
\end{array}$$  
The opportunity cost of making a calculator for Smith is ________ and for Jones it is ________.

Quizplus · Accepted Answer

The opportunity cost of making a calculator for Smith is 0.10 computers, and for Jones it is 0.05 computers. This is because Smith can produce 100 calculators per hour, or 10 computers per hour. So, the opportunity cost of making a calculator for Smith is 10/100 = 0.10 computers. Similarly, Jones can produce 120 calculators per hour, or 6 computers per hour. So, the opportunity cost of making a calculator for Jones is 6/120 = 0.05 computers.

Smith and Jones Comprise a Two-Person Economy The Opportunity Cost of Making a Calculator for Smith Is