-In the above figure,Jack's opportunity cost of producing 1 gallon of soda is ________ of bottled water.
A) 1 gallon
B) 1/2 of a gallon
C) 6 gallons
D) 1/4 of a gallon
E) 2 gallons

Question

-In the above figure,Jack's opportunity cost of producing 1 gallon of soda is ________ of bottled water.
A) 1 gallon 
B) 1/2 of a gallon 
C) 6 gallons 
D) 1/4 of a gallon 
E) 2 gallons

Quizplus · Accepted Answer

Opportunity cost is calculated by comparing the trade-offs between two goods. If Jack's opportunity cost of producing 1 gallon of soda is 2 gallons of bottled water, it means he foregoes producing 2 gallons of bottled water to produce 1 gallon of soda.

-In the Above Figure,Jack's Opportunity Cost of Producing 1 Gallon