Table 3-10
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 3-10.Juanita's opportunity cost of programming one cellular phone is testing
A) 7.5 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 5/2 cellular phones.
B) 2/15 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 5/2 cellular phones.
C) 7.5 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 2/5 cellular phones.
D) 2/15 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 2/5 cellular phones.

Question

Table 3-10
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 3-10.Juanita's opportunity cost of programming one cellular phone is testing
A) 7.5 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 5/2 cellular phones. 
B) 2/15 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 5/2 cellular phones. 
C) 7.5 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 2/5 cellular phones. 
D) 2/15 cellular phones and Shantala's opportunity cost of programming one cellular phone is testing 2/5 cellular phones.

Quizplus · Accepted Answer

Juanita's opportunity cost of programming is found by dividing the number of cellular phones she can test in the time it takes her to program one phone:
10 ÷ (2/3) = 15
So, Juanita's opportunity cost of programming one cellular phone is testing 15 cellular phones.
Shantala's opportunity cost of programming is found by dividing the number of cellular phones she can test in the time it takes her to program one phone:
10 ÷ (4/3) = 7.5
So, Shantala's opportunity cost of programming one cellular phone is testing 7.5 cellular phones.

Table 3-10 Juanita and Shantala Run a Business That Programs and Tests