Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.

-The opportunity cost of an extra calculator for Smith is __________ and for Jones it is __________.
A) 0.10 computers;0.05 computers
B) 10 computers;6 computers
C) 1 computer;0.5 computers
D) 0.6 computers;1.2 computers
E) 0.05 computers;0.10 computers

Question

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.
 
-The opportunity cost of an extra calculator for Smith is __________ and for Jones it is __________.
A) 0.10 computers;0.05 computers 
B) 10 computers;6 computers 
C) 1 computer;0.5 computers 
D) 0.6 computers;1.2 computers 
E) 0.05 computers;0.10 computers

Quizplus · Accepted Answer

The opportunity cost is calculated by determining how many computers must be given up to produce an additional calculator. For Smith, it's 0.10 computers per calculator, and for Jones, it's 0.05 computers per calculator.

Smith and Jones Comprise a Two-Person Economy