Rika's opportunity cost of producing 100 t-shirts is 50 jackets.Jeff's opportunity cost of producing 75 t-shirts is 25 jackets.Who should specialize in jackets?

Question

Quizplus · Accepted Answer

Rika has a lower opportunity cost of producing jackets (1 jacket for 2 t-shirts) compared to Jeff (1 jacket for 3 t-shirts). Therefore, Rika should specialize in jackets and Jeff should specialize in t-shirts to maximize their productivity and efficiency.

Rika's Opportunity Cost of Producing 100 T-Shirts Is 50 Jackets