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 Penda is
A) 1/8 basket.
B) 3/4 basket.
C) 4/3 baskets.
D) 8 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 Penda is
A) 1/8 basket. 
B) 3/4 basket. 
C) 4/3 baskets. 
D) 8 baskets.

Quizplus · Accepted Answer

The opportunity cost of 1 birdhouse for Penda is 4/3 baskets, as it represents the number of baskets Penda must give up to produce one additional birdhouse.

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