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Fact 2.3.1
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.
-From Fact 2.3.1, we know that
A)Andy has the lower opportunity cost of producing bread, while Andy and Rolfe have equal opportunity costs of producing butter.
B)Andy has the lower opportunity cost of producing both bread and butter.
C)Andy has the higher opportunity cost of producing both bread and butter.
D)Andy has the lower opportunity cost of producing butter, while Rolfe has the lower opportunity cost of producing bread.
E)Andy has the lower opportunity cost of producing bread, while Rolfe has the lower opportunity cost of producing butter.

Question

Quizplus · Accepted Answer

From Fact 2.3.1, we can see that Andy can produce more loaves of bread than Rolfe in an eight-hour day, while Rolfe can produce more butter than Andy in the same amount of time. This means that Andy has a lower opportunity cost of producing bread than Rolfe, while Rolfe has a lower opportunity cost of producing butter than Andy. Therefore, the best answer is E.

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