Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. $$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { Total Tons } \
\text { Per Day }
\end{array} & \begin{array} { c }
\text { Number of } \
\text { Miners }
\end{array} \
\hline \text { Mother Lode } & 100 & 25 \
\hline \text { Scraping Bottom } & 30 & 10 \
\hline \text { Middle Drift } & 75 & 15 \
\hline
\end{array}$$ The opportunity cost of moving one miner from Mother Lode to another mine is:
A)2 tons per day.
B)3 tons per day.
C)4 tons per day.
D)1 ton per day.

Question

Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. $$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { Total Tons } \
\text { Per Day }
\end{array} & \begin{array} { c } 
\text { Number of } \
\text { Miners }
\end{array} \
\hline \text { Mother Lode } & 100 & 25 \
\hline \text { Scraping Bottom } & 30 & 10 \
\hline \text { Middle Drift } & 75 & 15 \
\hline
\end{array}$$ The opportunity cost of moving one miner from Mother Lode to another mine is:
A)2 tons per day.
B)3 tons per day.
C)4 tons per day.
D)1 ton per day.

Quizplus · Accepted Answer

To find the opportunity cost of moving one miner from Mother Lode to another mine, we need to compare the change in production at the two mines. Moving one miner from Mother Lode to Scraping Bottom would decrease the total production by 100 - 30 = 70 tons per day, while adding one miner to Scraping Bottom would increase its production by 30/10 = 3 tons per day. Therefore, the opportunity cost of moving one miner from Mother Lode to Scraping Bottom is 70/3 = 23.33 (approximately) tons per day. Similarly, moving one miner from Mother Lode to Middle Drift would decrease the total production by 100 - 75 = 25 tons per day, while adding one miner to Middle Drift would increase its production by 75/15 = 5 tons per day. Therefore, the opportunity cost of moving one miner from Mother Lode to Middle Drift is 25/5 = 5 tons per day. The lowest opportunity cost is for Middle Drift, at 5 tons per day, so the best choice is to move one miner from Mother Lode to Middle Drift.

Earth Movers & Shakers Operates 3 Iron Ore Mines The Opportunity Cost of Moving One Miner from Mother Lode