Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Complete the table by calculating the required opportunity costs for brushes and combs.
$\begin{array}{|c|c|c|c|c|c|}
\hline & \begin{array}{c}
\text { Number } \
\text { of } \
\text { Combination }
\end{array} & \begin{array}{c}
\text { Opportunity Cost } \
\text { of Brushes in } \
\text { Terms } \
\text { of Combs }
\end{array} & \begin{array}{c}
\text { Number } \
\text { of Combs }
\end{array} & \begin{array}{c}
\text { Opportunity Cost } \
\text { of Combs in Terms } \
\text { of Brushes }
\end{array} \
\hline \mathrm{J} & 0 & & 4 & \
\hline \mathrm{K} & 10 & & 3 & \
\hline \mathrm{L} & 17 & & 2 & \
\hline \mathrm{M} & 21 & & 1 & \
\hline \mathrm{N} & 23 & & 0 & \
\hline
\end{array}$
Table $1.3$
Production Possibilities for Brushes and Combs On the basis of your calculations in Table 1.3, the highest opportunity cost for brushes in terms of combs is
A) 0.10 comb per brush.
B) 23 combs per brush.
C) 0.50 comb per brush.
D) 0.29 comb per brush.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of a good is calculated by the number of units of the other good that must be forgone. To find the highest opportunity cost for brushes in terms of combs, we look at the transition from producing 0 brushes to 10 brushes (from combination J to K), where the number of combs decreases from 4 to 3, a decrease of 1 comb for an increase of 10 brushes. Thus, the opportunity cost of producing one brush in terms of combs forgone is $1/10 = 0.10$ comb per brush. However, the question seems to be asking for the highest opportunity cost for brushes in terms of combs, which is calculated at each step. The correct calculation involves looking at the changes between each combination:- From K to L: Going from 10 to 17 brushes, we decrease from 3 to 2 combs. The opportunity cost is $1 \text{ comb} / 7 \text{ brushes} = 0.14 \text{ comb per brush}$.- From L to M: Going from 17 to 21 brushes, we decrease from 2 to 1 comb. The opportunity cost is $1 \text{ comb} / 4 \text{ brushes} = 0.25 \text{ comb per brush}$.- From M to N: Going from 21 to 23 brushes, we decrease from 1 to 0 combs. The opportunity cost is $1 \text{ comb} / 2 \text{ brushes} = 0.50 \text{ comb per brush}$.The highest opportunity cost is therefore 0.50 comb per brush, which occurs when going from producing 21 brushes and 1 comb to 23 brushes and 0 combs.

Table 13 Shows the Hypothetical Trade-Off Between Different Combinations of Brushes