The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4

-Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?

Question

The table given below represents the output per hour of cookies and chilies in Ohio and Iowa.Table 2.4
 
-Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?

Quizplus · Accepted Answer

To find the opportunity cost of repairing one car for Bill, we need to determine how many toys Bob would have produced if he spent the same amount of time as Bill repairing cars. 
In 8 hours, Bob can repair 4 cars. If he spends the same amount of time as Bill (8 hours) repairing cars, he would have produced 16 toys. 
Therefore, the opportunity cost of repairing one car for Bill is 8 toys (the difference between the 16 toys he could have produced and the 2 cars he actually repaired). 
So, the best choice is B.

The Table Given Below Represents the Output Per Hour of Cookies