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 toaster for Miguel is
A)1/2 mixer.
B)2 hours of labor.
C)2 mixers.
D)20 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 toaster for Miguel is
A)1/2 mixer. 
B)2 hours of labor. 
C)2 mixers. 
D)20 hours of labor.

Quizplus · Accepted Answer

According to the table, Miguel can produce 2 mixers in 1 hour or 1 toaster in 2 hours. Therefore, the opportunity cost of producing 1 toaster is giving up the production of 1/2 mixer (since it takes him 2 hours to make a toaster, he could have made 1 mixer in that time). So the answer is A) 1/2 mixer.

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