Table 3-4

-Refer to Table 3-4. What is the opportunity cost of 1 basket for Manitoba?
A)1/4 birdhouse.
B)3/4 birdhouse.
C)1 birdhouse.
D)4/3 birdhouses.

Question

Table 3-4
 
-Refer to Table 3-4. What is the opportunity cost of 1 basket for Manitoba?
A)1/4 birdhouse. 
B)3/4 birdhouse. 
C)1 birdhouse. 
D)4/3 birdhouses.

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