Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.The opportunity cost of one fence is _______ for Tom and ________ for Jerry.Therefore Tom should specialize in ______________.

Question

Quizplus · Accepted Answer

Tom's opportunity cost of one fence is 4 dishes (16 dishes/4 fences), and Jerry's opportunity cost of one fence is 2 dishes (14 dishes/7 fences). Tom should specialize in dishes because he has a lower opportunity cost for making dishes compared to Jerry.

Tom and Jerry Have Two Tasks to Do All Day