Table 2-10
Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. What is Barney's opportunity cost of making a unicycle?
A) 1/2 pogo stick
B) 2 pogo sticks
C) 1.75 unicycles
D) 2.8 pogo sticks

Question

Table 2-10
  Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. What is Barney's opportunity cost of making a unicycle?
A) 1/2 pogo stick 
B) 2 pogo sticks 
C) 1.75 unicycles 
D) 2.8 pogo sticks

Quizplus · Accepted Answer

Barney's opportunity cost of making a unicycle is the output that he could have produced if he was making pogo sticks instead. Since he can produce 4 pogo sticks in a month, his opportunity cost of making a unicycle is 2 pogo sticks (half of his monthly output). 
The best choice would depend on each person's preferences and the market demand, but if they both have the same production possibilities, it would be efficient if Fred makes pogo sticks and Barney makes unicycles, as they would both be producing their comparative advantage.

Table 2-10 Table 2-10 Shows the Output Per Month of Month