Table 3-4

-Refer to Table 3-4. What is the opportunity cost of 1 basket for Manitoba?

Question

Table 3-4
 
-Refer to Table 3-4. What is the opportunity cost of 1 basket for Manitoba?

Quizplus · Accepted Answer

To calculate the opportunity cost, we need to look at the trade-off for Manitoba between producing baskets and birdhouses. For every basket Manitoba produces, they give up the opportunity to produce 3/4 birdhouse (the opportunity cost). Looking at the other options, A is incorrect because it suggests that Manitoba would give up 1/4 of a birdhouse for every basket, which is the opposite of the given information. C and D are incorrect because they suggest that Manitoba would give up one whole birdhouse for every basket, which is not the case based on the information in the table.

Table 3-4 -Refer to Table 3-4. What Is the Opportunity Cost of the Opportunity