-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly.
A) 50; 40
B) 25; 10
C) 2; 2/5
D) 1/2; 2 1/2

Question

-According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good Y is ________ units of Good X for Chen and ________ units of Good X for Holly.
A) 50; 40 
B) 25; 10 
C) 2; 2/5 
D) 1/2; 2 1/2

Quizplus · Accepted Answer

The opportunity cost of producing one unit of Good Y in terms of Good X is calculated by dividing the total amount of Good X that could be produced by the total amount of Good Y that could be produced. Since the opportunity costs are constant, for Chen, producing 1 unit of Good Y costs 2 units of Good X (assuming a linear trade-off). For Holly, producing 1 unit of Good Y costs 2/5 units of Good X, based on the same principle.

-According to the Above Table, Which Assumes That Opportunity Costs