Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.

-Refer to Table 3-8.The opportunity cost of 1 birdhouse for Kito is
A) 1/4 basket.
B) 2/3 basket.
C) 3/2 baskets.
D) 4 baskets.

Question

Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.
 
-Refer to Table 3-8.The opportunity cost of 1 birdhouse for Kito is
A) 1/4 basket. 
B) 2/3 basket. 
C) 3/2 baskets. 
D) 4 baskets.

Quizplus · Accepted Answer

The opportunity cost of 1 birdhouse for Kito is 1/4 basket because Kito can produce 4 baskets in the same amount of time it takes to produce 1 birdhouse.

Table 3-8 Assume That Kito and Penda Can Switch Between Producing Baskets