Figure 3-7

-Refer to Figure 3-7.The opportunity cost of 1 cup for Juba is
A) 1/6 bowl.
B) 2/3 bowl.
C) 3/2 bowls.
D) 6 bowls.

Question

Figure 3-7
 
-Refer to Figure 3-7.The opportunity cost of 1 cup for Juba is
A) 1/6 bowl. 
B) 2/3 bowl. 
C) 3/2 bowls. 
D) 6 bowls.

Quizplus · Accepted Answer

To calculate the opportunity cost, we need to compare the quantity of one item that must be given up for the next best alternative. 
For Juba, the opportunity cost of 1 cup is the amount of soup he would have to give up. 
He could either have 2 cups of soup and 1 bowl of rice or 1 cup of soup and 2 bowls of rice. 
Therefore, the opportunity cost of 1 cup of soup for Juba is 2/3 of a bowl of rice. 
Since he would have to give up more rice for each additional cup of soup, the opportunity cost of soup will increase.

Figure 3-7 -Refer to Figure 3-7.The Opportunity Cost of 1 Cup for of 1