In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter.
Based on the information above, the opportunity cost of producing 1 loaf of bread is

Question

Quizplus · Accepted Answer

The opportunity cost of producing 1 loaf of bread for Andy is 1/3 kilogram of butter (8 kilograms of butter in 8 hours = 24 loaves of bread in 8 hours, so to produce 1 loaf of bread he must give up 1/3 of his butter production). 
The opportunity cost of producing 1 loaf of bread for Rolfe is 1 kilogram of butter (8 kilograms of butter in 8 hours = 8 loaves of bread in 8 hours, so to produce 1 loaf of bread he must give up 1 kilogram of his butter production). Therefore, the answer is B.

In an Eight-Hour Day, Andy Can Produce Either 24 Loaves