Table 3-25
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-25. The opportunity cost of 1 mixer for Miguel is
A)1/2 toaster.
B)1/2 hour of labor.
C)2 toasters.
D)8 hours of labor.

Question

Table 3-25
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
​ 
-Refer to Table 3-25. The opportunity cost of 1 mixer for Miguel is
A)1/2 toaster. 
B)1/2 hour of labor. 
C)2 toasters. 
D)8 hours of labor.

Quizplus · Accepted Answer

According to the table, Miguel can produce either 2 toasters or 1 mixer in 1 hour. Therefore, the opportunity cost of 1 mixer for Miguel is giving up the production of 2 toasters. Therefore, the best choice would be to produce toasters instead of mixers as it has a lower opportunity cost for Miguel.

Table 3-25 Assume That Maya and Miguel Can Switch Between Producing Mixers