Joan can catch 20 lobsters in one day. It also takes her one day to make five lobster-pots to catch the lobsters. Her opportunity cost of one lobster-pot is 20 lobsters.

Question

Quizplus · Accepted Answer

The opportunity cost of one lobster-pot is not 20 lobsters. It is the number of lobsters she would have to give up catching in order to make one lobster-pot, which is 4 lobsters (since she can catch 20 lobsters in a day and it takes her a day to make 5 pots).

Joan Can Catch 20 Lobsters in One Day