FIGURE 1- 5 )

Multiple Choice

FIGURE 1- 5 )
-Suppose that a bakeshop with 5 employees can produce both pies and cakes.In one day,if all resources are devoted to baking pies,the shop can produce 125 pies; if all resources are devoted to baking cakes,the shop can produce 50.What is the shop's opportunity cost of producing any one cake?

A) 0.4 cakes
B) 2.5 cakes
C) 2.5 pies
D) 0.25 pies
E) 0.4 pies