Nick and Traci are two woodworkers who both make tables and chairs. In one month, Nick can make 3 tables or 6 chairs, whereas Traci can make 16 tables or 48 chairs. Given this, we know that the opportunity cost of 1 chair is
A)1/2 table for Nick and 1/3 table for Traci.
B)1/2 table for Nick and 3 tables for Traci.
C)3 tables for Nick and 1/2 table for Traci.
D)1/3 table for Nick and 2 tables for Traci.

Question

Quizplus · Accepted Answer

The opportunity cost of producing 1 chair for Nick is 1/2 table, since he can make 6 chairs or 3 tables, implying he sacrifices 1/2 table for each chair he makes instead. For Traci, the opportunity cost of 1 chair is 1/3 table, as she can make 48 chairs or 16 tables, meaning she gives up 1/3 of a table for each chair produced.

Nick and Traci Are Two Woodworkers Who Both Make Tables