Table 3-29
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.

-Refer to Table 3-29. Juanita's opportunity cost of testing one cellular phone is programming
A)0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
B)0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.
C)7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones.
D)7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.

Question

Table 3-29
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.
​ 
-Refer to Table 3-29. Juanita's opportunity cost of testing one cellular phone is programming
A)0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones. 
B)0.133 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones. 
C)7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 2.5 cellular phones. 
D)7.5 cellular phones and Shantala's opportunity cost of testing one cellular phone is programming 0.4 cellular phones.

Quizplus · Accepted Answer

Juanita's opportunity cost of testing one cellular phone is the number of cellular phones she could have programmed instead. This is calculated by dividing the number of phones programmed by the number of phones tested, which gives 32/240 = 0.133. Shantala's opportunity cost of testing one cellular phone is calculated the same way, dividing the number of phones programmed (20) by the number of phones tested (50), which equals 0.4. Therefore, the answer is B, as it matches both values.

Table 3-29 Juanita and Shantala Run a Business That Programs and Tests