The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns.
TABLE 1-1
-Refer to Table 1-1.Which of the following statements about Tristan's and Thomas's opportunity costs is correct?
A)Tristan has a higher opportunity cost of producing mowed lawns.
B)Thomas has a higher opportunity cost of producing mowed lawns.
C)Tristan has a higher opportunity cost of producing fishing lures.
D)Thomas has a higher opportunity cost of producing fishing lures.
E)Both A and D are correct.

Question

The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns.
  TABLE 1-1
-Refer to Table 1-1.Which of the following statements about Tristan's and Thomas's opportunity costs is correct?
A)Tristan has a higher opportunity cost of producing mowed lawns. 
B)Thomas has a higher opportunity cost of producing mowed lawns. 
C)Tristan has a higher opportunity cost of producing fishing lures. 
D)Thomas has a higher opportunity cost of producing fishing lures. 
E)Both A and D are correct.

Quizplus · Accepted Answer

Opportunity cost is defined as the value of the next best alternative given up in order to pursue a certain action. In this case, we can calculate the opportunity cost of producing fishing lures as the number of lawns that could have been mowed in the same amount of time, and vice versa.

For Tristan, the opportunity cost of producing a fishing lure is 3 lawns (the number of lawns he could have mowed instead), while the opportunity cost of mowing a lawn is 4 fishing lures (the number of lures he could have produced instead).

For Thomas, the opportunity cost of producing a fishing lure is also 3 lawns (the number of lawns he could have mowed instead), while the opportunity cost of mowing a lawn is 1 fishing lure (the number of lures he could have produced instead).

Therefore, Tristan has a higher opportunity cost of producing fishing lures, while Thomas has a higher opportunity cost of mowing lawns. Therefore, the correct answer is E, as both statements A and D are correct.

The Table Below Illustrates That,in One Day,Tristan Can Produce Either