Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-6.The opportunity cost of 1 toaster for Maya is
A) 0.625 mixers.
B) 1.6 hours of labor.
C) 1.6 mixers.
D) 8 hours of labor.

Question

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.
 
-Refer to Table 3-6.The opportunity cost of 1 toaster for Maya is
A) 0.625 mixers. 
B) 1.6 hours of labor. 
C) 1.6 mixers. 
D) 8 hours of labor.

Quizplus · Accepted Answer

Maya's opportunity cost of producing 1 toaster is the amount of mixers she could have produced instead. If Maya can produce 1 toaster in 8 hours and 1 mixer in 5 hours, then the opportunity cost of 1 toaster is 8/5 = 1.6 mixers.

Table 3-6 Assume That Maya and Miguel Can Switch Between Producing Mixers