Table 2.5

Table 2.5 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.5.What is Serena's opportunity cost of making a bracelet?
A)2 necklaces
B)1/2 of a bracelet
C)1/2 of a necklace
D)3/4 of a bracelet

Question

Table 2.5

Table 2.5 shows the output per week of two jewelers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.5.What is Serena's opportunity cost of making a bracelet?
A)2 necklaces 
B)1/2 of a bracelet 
C)1/2 of a necklace 
D)3/4 of a bracelet

Quizplus · Accepted Answer

Serena's opportunity cost of making a bracelet is the amount of the other good (necklaces) she must give up to produce one more bracelet. If the information in Table 2.5 indicates that she gives up 2 necklaces to make one additional bracelet, then the opportunity cost of a bracelet is 2 necklaces.

Table 2.5 Table 2.5 Shows the Output Per Week of Two