The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the next three questions.

-What is Jim's opportunity cost of making 1 pizza?
A) 50 stromboli
B) 20 stromboli
C) 2.5 stromboli
D) 2 stromboli
E) 1.5 stromboli

Question

The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between making pizzas and making stromboli. Refer to these figures to answer the next three questions.
 
-What is Jim's opportunity cost of making 1 pizza?
A) 50 stromboli 
B) 20 stromboli 
C) 2.5 stromboli 
D) 2 stromboli 
E) 1.5 stromboli

Quizplus · Accepted Answer

Jim can make 2 stromboli in the same amount of time it takes to make 1 pizza. So, the opportunity cost of making 1 pizza is 2 stromboli.

The Figures Below Depict the Production Possibilities Frontiers (PPFs) for Two