Table 2.5 Table 2.5 shows the output per month of two people, Fred and Barney.They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.6.What is Barney's opportunity cost of making a unicycle?

Question

Table 2.5  Table 2.5 shows the output per month of two people, Fred and Barney.They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.6.What is Barney's opportunity cost of making a unicycle?

Quizplus · Accepted Answer

According to Table 2.6, Barney can either make 2 unicycles or 4 pogo sticks in a month. Therefore, his opportunity cost of making a unicycle is giving up the production of 2 pogo sticks (the next best alternative). The best choice for Barney would be to make pogo sticks, as his production output is higher for pogo sticks than unicycles.

Table 25 Table 2