Refer to Table 1. The opportunity cost of 1 basket for Patrick is a. 1/3 ceramic
ID: 1187030 • Letter: R
Question
Refer to Table 1. The opportunity cost of 1 basket for Patrick is
a.
1/3 ceramic pot.
b.
1 ceramic pot.
c.
3 ceramic pots.
d.
4 ceramic pots.
Table 1
Labor hours needed to make one unit of:
Amount Produced in 24 Hours:
Woven Baskets
Ceramic Pots
Woven Baskets
Ceramic Pots
Patrick
6
2
4
12
Donna
3
4
8
6
Brief explaination why the answer is correct too. (I am using Principles of Microeconomics by N. Gregory Mankiw 6h Edition, a page number would be great!)
a.
1/3 ceramic pot.
b.
1 ceramic pot.
c.
3 ceramic pots.
d.
4 ceramic pots.
Explanation / Answer
a) 3 ceramic pot.
Because in the time patrick can make 1 baskets( 6 hours ) he can make 3 ceramic pots( 2*3 hours ). So the opprtunity of 1 basket is same as 3 ceramic pots. I mean patric should be ready to give away 1 basket for 3 ceramic pots and hence the opportunity cost of 1 basket is 3 ceramic pots