Figure 3-3
Ice cream is measured in kilograms.
-Refer to Figure 3-3. For Jerry, what is the opportunity cost of 1 kg of cones?

Question

Figure 3-3
Ice cream is measured in kilograms. 
-Refer to Figure 3-3. For Jerry, what is the opportunity cost of 1 kg of cones?

Quizplus · Accepted Answer

The opportunity cost of 1 kg of cones for Jerry is the amount of ice cream he would have to give up in order to produce 1 kg of cones. In this case, Jerry would have to give up 2/3 kg of ice cream to produce 1 kg of cones (as shown in the table). Therefore, the best choice for Jerry would be to produce ice cream, as it has a lower opportunity cost for him.

Figure 3-3 Ice Cream Is Measured in Kilograms