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

Question

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

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 bottled water is 1/2 of a gallon of soda, it means he gives up producing 1/2 gallon of soda to produce 1 gallon of bottled water.

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