-Deb and Pete have volunteered to help their favorite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.What is Deb's opportunity cost of assembling 1 packet?
A) 160 envelopes
B) 40 envelopes
C) 4 envelopes
D) 1/4 of an envelope
E) 4 packets

Question

-Deb and Pete have volunteered to help their favorite charity mail out fundraiser information.The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes.What is Deb's opportunity cost of assembling 1 packet?
A) 160 envelopes 
B) 40 envelopes 
C) 4 envelopes 
D) 1/4 of an envelope 
E) 4 packets

Quizplus · Accepted Answer

Deb's opportunity cost of assembling 1 packet is the amount of envelopes she could have stuffed instead. From the graph, if Deb assembles 1 more packet, she stuffs 4 fewer envelopes, making the opportunity cost 4 envelopes.

-Deb and Pete Have Volunteered to Help Their Favorite Charity