Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.What is Haley's opportunity cost of making a necklace?

Question

Table 2.4  Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.What is Haley's opportunity cost of making a necklace?

Quizplus · Accepted Answer

From Table 2.4, we can see that Haley can either make 4 bracelets or 3 necklaces in a week. Therefore, the opportunity cost of making a necklace for Haley is the number of bracelets she could have made instead.

Opportunity Cost of making a necklace for Haley = 4 bracelets - 3 bracelets = 1 bracelet

So, Haley's opportunity cost of making a necklace is 3/4th of a bracelet.

As for the best choice(s), it depends on the goal of the jewellers. If they want to maximize the number of bracelets produced, then both Serena and Haley should only make bracelets. However, if they want to produce more necklaces, then they should specialize in making necklaces. Additionally, they could consider a combination of making both bracelets and necklaces to maximize total output.

Table 24 Table 2