Horatio can produce either a combination of 15 bird houses and 25 wind chimes or a combination of 30 bird houses and 15 wind chimes.If he now produces 30 bird houses and 15 wind chimes,what is the opportunity cost of producing an additional 10 wind chimes?
A)2 bird houses
B)15 bird houses
C)30 bird houses
D)45 bird houses

Question

Quizplus · Accepted Answer

The opportunity cost of producing an additional 10 wind chimes is the number of bird houses that must be given up. Initially, Horatio can produce 30 bird houses and 15 wind chimes. To produce 25 wind chimes (an additional 10), he must switch to the combination of 15 bird houses and 25 wind chimes, giving up 15 bird houses.

Horatio Can Produce Either a Combination of 15 Bird Houses