Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.

-Refer to Table 3-6.The opportunity cost of 1 quilt for Carlos is
A) 1/2 dress.
B) 1/2 hour of labor.
C) 2 dresses.
D) 90 hours of labor.

Question

Table 3-6
Assume that Hilda and Carlos can switch between producing quilts and producing dresses at a constant rate.
 
-Refer to Table 3-6.The opportunity cost of 1 quilt for Carlos is
A) 1/2 dress. 
B) 1/2 hour of labor. 
C) 2 dresses. 
D) 90 hours of labor.

Quizplus · Accepted Answer

The opportunity cost of producing one quilt for Carlos is the number of dresses he could have produced in that time. If Carlos can produce 2 dresses in the time it takes to make 1 quilt, then the opportunity cost of 1 quilt is 2 dresses.

Table 3-6 Assume That Hilda and Carlos Can Switch Between Producing Quilts