Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. $\begin{array}{lccc}
\text { Good } &\text { Smith } & \text { Jones } \
\text { Computers } & 10 & 6 \
\text { Calculators } & 100 & 120
\end{array}$ Refer to the table above. The opportunity cost of making an extra calculator for Smith is __________ and for Jones it is __________.

Question

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. $\begin{array}{lccc}
\text { Good } &\text { Smith } &  \text { Jones } \
\text { Computers } & 10 & 6 \
\text { Calculators } & 100 & 120
\end{array}$ Refer to the table above. The opportunity cost of making an extra calculator for Smith is __________ and for Jones it is __________.

Quizplus · Accepted Answer

Smith's opportunity cost for one calculator is 0.10 computers (10 computers/100 calculators), and Jones's opportunity cost is 0.05 computers (6 computers/120 calculators).

Smith and Jones Comprise a Two-Person Economy Refer to the Table Above