Figure 3-22
Alice and Betty's Production Possibilities in one 8-hour day.
Alice's Production Possibilities Frontier
Betty's Production Possibilities Frontier
-Refer to Figure 3-22.What are Alice and Betty's opportunity costs of 1 pitcher of lemonade?
A)Alice's opportunity cost of 1 pitcher of lemonade is 1/2 of a pizza and Betty's opportunity cost of 1 pitcher of lemonade is 2/3 of a pizza.
B)Alice's opportunity cost of 1 pitcher of lemonade is 2 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 1.5 pizzas.
C)Alice's opportunity cost of 1 pitcher of lemonade is 10 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 10 pizzas.
D)Alice's opportunity cost of 1 pitcher of lemonade is 200 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 300 pizzas.

Question

Figure 3-22
Alice and Betty's Production Possibilities in one 8-hour day.
Alice's Production Possibilities Frontier
Betty's Production Possibilities Frontier  
-Refer to Figure 3-22.What are Alice and Betty's opportunity costs of 1 pitcher of lemonade?
A)Alice's opportunity cost of 1 pitcher of lemonade is 1/2 of a pizza and Betty's opportunity cost of 1 pitcher of lemonade is 2/3 of a pizza. 
B)Alice's opportunity cost of 1 pitcher of lemonade is 2 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 1.5 pizzas. 
C)Alice's opportunity cost of 1 pitcher of lemonade is 10 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 10 pizzas. 
D)Alice's opportunity cost of 1 pitcher of lemonade is 200 pizzas and Betty's opportunity cost of 1 pitcher of lemonade is 300 pizzas.

Quizplus · Accepted Answer

Alice's opportunity cost of 1 pitcher of lemonade is the slope of her production possibilities frontier at that point, which is 1/2 of a pizza. Betty's opportunity cost of 1 pitcher of lemonade is the slope of her production possibilities frontier at that point, which is 2/3 of a pizza.

There is no specific "best choice" given in the question, so no answer is needed for that.

Figure 3-22 Alice and Betty's Production Possibilities in One 8-Hour Day