Solved

Smith and Jones Comprise a Two-Person Economy The Opportunity Cost of Making a Calculator for Smith Is

Question 106

Multiple Choice

Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below.  Calculators  Per Hour  Computers  Per Hour  Smith 10010 Jones 1206\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Calculators } \\\text { Per Hour }\end{array} & \begin{array} { c } \text { Computers } \\\text { Per Hour }\end{array} \\\hline \text { Smith } & 100 & 10 \\\hline \text { Jones } & 120 & 6 \\\hline\end{array} The opportunity cost of making a calculator for Smith is ______ and for Jones it is ______.


A) 0.10 computers; 0.05 computers
B) 10 computers; 20 computers
C) 1 computer; 0.5 computers
D) 0.6 computers; 1.2 computers

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions