Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.The opportunity cost of one bomb is _______ for Tom and ________ for Jerry.Therefore Tom should specialize in ______________.
A)4 traps;2 traps;traps
B)16 traps;14 traps;traps
C)4 traps;2 traps;bombs
D)16 traps;14 traps;bombs

Question

Quizplus · Accepted Answer

Tom can build 4 bombs or 16 traps. So, the opportunity cost of one bomb is 4 traps for Tom. Jerry can build 7 bombs or 14 traps. So, the opportunity cost of one bomb is 2 traps for Jerry. Tom should specialize in traps because he can produce them at a lower opportunity cost than Jerry.

Tom and Jerry Have Two Tasks to Do All Day