Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.

-Refer to Table 3-8.The opportunity cost of 1 basket for Penda is
A) 1/8 birdhouse.
B) 3/4 birdhouse.
C) 4/3 birdhouses.
D) 8 birdhouses.

Question

Table 3-8
Assume that Kito and Penda can switch between producing baskets and producing birdhouses at a constant rate.
 
-Refer to Table 3-8.The opportunity cost of 1 basket for Penda is
A) 1/8 birdhouse. 
B) 3/4 birdhouse. 
C) 4/3 birdhouses. 
D) 8 birdhouses.

Quizplus · Accepted Answer

To find the opportunity cost of 1 basket for Penda, we need to look at the amount of birdhouses she gives up to produce 1 basket. 
From the table, we see that Penda can produce 3 birdhouses in the time it takes her to produce 1 basket. Therefore, the opportunity cost of 1 basket for Penda is 3/1 or 3 birdhouses. 
So, the best choice is B because it represents the correct opportunity cost of 1 basket for Penda.

Table 3-8 Assume That Kito and Penda Can Switch Between Producing Baskets