Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 table is
a. 1/6 chair for Ken and 1/3 chair for Traci.
b. 1/6 chair for Ken and 3 chairs for Traci.
c. 6 chairs for Ken and 1/3 chair for Traci.
d. 6 chairs for Ken and 3 chairs for Traci.
d
You might also like to view...
The opportunity cost of holding excess reserves is equal to
A) the federal funds rate. B) the federal funds rate minus the discount rate. C) the discount rate. D) none of the above.
Suppose a fishing boat currently brings 10,000 fish to market each day and earns a profit of $40,000 when the price of fish is $12 . Suppose that there are 100 workers on the boat, and each works 10 hours each day. If their health insurance premiums, paid by the boat owner, increase by $80 per worker, what will the new profit be?
a. $80,000 b. a loss of $40,000 c. $48,000 d. $32,000 e. a loss of $760,000
Nominal GDP is based on prices prevailing when production takes place
Indicate whether the statement is true or false
Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the
a. demand for flour to increase.
b. demand for flour to decrease.
c. supply of flour to increase.
d. supply of flour to decrease.