Table 19-2
$\begin{array}{|l|l|l|}
\hline & \text { Pies } & \text { Cakes } \
\hline \text { Sarita } & 15 & 25 \
\hline \text { Gabriel } & 12 & 16\
\hline
\end{array}$ Sarita and Gabriel own S&G Bakery. Table 19-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 19-2.Select the statement that accurately interprets the data in the table.
A) Sarita has a greater opportunity cost than Gabriel for baking cakes.
B) Sarita's opportunity cost for baking cakes is less than Gabriel's.
C) Gabriel has a greater opportunity cost than Sarita for baking pies.
D) Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

Question

Table 19-2
 $\begin{array}{|l|l|l|} 
\hline & \text { Pies } & \text { Cakes } \
\hline \text { Sarita } & 15 & 25 \
\hline \text { Gabriel } & 12 & 16\
\hline
\end{array}$ Sarita and Gabriel own S&G Bakery. Table 19-2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 19-2.Select the statement that accurately interprets the data in the table.
A) Sarita has a greater opportunity cost than Gabriel for baking cakes.
B) Sarita's opportunity cost for baking cakes is less than Gabriel's.
C) Gabriel has a greater opportunity cost than Sarita for baking pies.
D) Gabriel's opportunity cost for baking cakes and baking pies are both greater than Sarita's.

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative given up in order to produce or consume a certain good or service. In this case, we can compare the opportunity costs of Sarita and Gabriel for baking cakes and pies. 
For example, if Sarita decides to bake 1 cake, she is giving up the opportunity to bake 3/5 of a pie (since she can bake 15 pies in a day). On the other hand, if Gabriel decides to bake 1 cake, he is giving up the opportunity to bake 4/5 of a pie (since he can bake 16 pies in a day). Therefore, Sarita's opportunity cost of baking cakes is less than Gabriel's.

Table 19-2 Sarita and Gabriel Own S&G Bakery