Given the production possibility tables for the First and Second Bakeries shown, we know that the opportunity cost of producing cookies: $$\begin{array} { c }
{ \text { First Bakery } } \quad\quad { \text { Second Bukery } } \
\begin{array} { | c | c | c | c | }
\hline \text { Conkies } & \text { Pies } & \text { Conkies } & \text { Pies } \
\hline 0 & 18 & 0 & 9 \
\hline 10 & 12 & 30 & 6 \
\hline 20 & 6 & 60 & 3 \
\hline 30 & 0 & 90 & 0 \
\hline
\end{array}\end{array}$$
A)is higher at First Bakery.
B)is higher at Second Bakery.
C)is the same at both bakeries.
D)cannot be computed without further information.

Question

Given the production possibility tables for the First and Second Bakeries shown, we know that the opportunity cost of producing cookies: $$\begin{array} { c } 
{ \text { First Bakery } }  \quad\quad  { \text { Second Bukery } } \
\begin{array} { | c | c | c | c | } 
\hline \text { Conkies } & \text { Pies } & \text { Conkies } & \text { Pies } \
\hline 0 & 18 & 0 & 9 \
\hline 10 & 12 & 30 & 6 \
\hline 20 & 6 & 60 & 3 \
\hline 30 & 0 & 90 & 0 \
\hline
\end{array}\end{array}$$
A)is higher at First Bakery.
B)is higher at Second Bakery.
C)is the same at both bakeries.
D)cannot be computed without further information.

Quizplus · Accepted Answer

The opportunity cost of producing cookies is higher at the First Bakery because for every 10 cookies produced, the First Bakery gives up 6 pies, whereas the Second Bakery gives up only 3 pies for every 30 cookies produced.

Given the Production Possibility Tables for the First and Second