Table 2-7

Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-7.What is Fred's opportunity cost of making a pogo stick?
A)1/3 of a unicycle
B)3 unicycles
C)6/7 of a pogo stick
D)1/2 of a unicycle

Question

Table 2-7
  
Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-7.What is Fred's opportunity cost of making a pogo stick?
A)1/3 of a unicycle 
B)3 unicycles 
C)6/7 of a pogo stick 
D)1/2 of a unicycle

Quizplus · Accepted Answer

Fred's opportunity cost of making a pogo stick is the amount of unicycles he could have made instead. If Fred's opportunity cost is 1/3 of a unicycle, it means for every pogo stick he makes, he gives up the production of 1/3 of a unicycle.

Table 2-7 Table 2-7 Shows the Output Per Month of Two People