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 stromboli?
A) 1/2 pizza
B) 2/3 pizza
C) 2 pizzas
D) 2 stromboli
E) 25 pizzas

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 stromboli?
A) 1/2 pizza 
B) 2/3 pizza 
C) 2 pizzas 
D) 2 stromboli 
E) 25 pizzas

Quizplus · Accepted Answer

Jim can make 2 pizzas in the same time it takes to make 3 strombolis. So, the opportunity cost of making 1 stromboli is 1/2 pizza.

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