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 unicycle?
A)1/3 of a pogo stick
B)3 pogo sticks
C)1/2 of a unicycle
D)1.3 pogo sticks

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 unicycle?
A)1/3 of a pogo stick 
B)3 pogo sticks 
C)1/2 of a unicycle 
D)1.3 pogo sticks

Quizplus · Accepted Answer

Fred's opportunity cost of making a unicycle is 3 pogo sticks, as he can produce 6 pogo sticks or 2 unicycles in a month. Therefore, if he decides to make a unicycle, he loses the opportunity to make 3 pogo sticks (half of his production capacity).

The best choice(s) depends on various factors such as demand, production costs, and profitability. Without such information, we cannot determine the best choice(s) solely based on the table provided.

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