-Jenny's opportunity cost of producing an extra pair of pants is
A) 1 pair of shoes.
B) 2/3 pairs of shoes.
C) 3/2 pairs of shoes.
D) 2 pairs of shoes.
E) 3 pairs of shoes.

Question

-Jenny's opportunity cost of producing an extra pair of pants is
A) 1 pair of shoes. 
B) 2/3 pairs of shoes. 
C) 3/2 pairs of shoes. 
D) 2 pairs of shoes. 
E) 3 pairs of shoes.

Quizplus · Accepted Answer

Opportunity cost is calculated as the ratio of what is given up to what is gained. If Jenny's opportunity cost of producing an extra pair of pants is 3/2 pairs of shoes, it means she forgoes producing 3/2 pairs of shoes to produce one additional pair of pants.

-Jenny's Opportunity Cost of Producing an Extra Pair of Pants