Table 3-31
Labor Hours Needed to
Make 1 Pound of:
Amount
Produced in 40 hours
Meat
Potatoes
Meat
Potatoes
Farmer
8 hours/pound
5 hours/pound
5 pounds
8 pounds
Rancher
4 hours/pound
10 hours/pound
10 pounds
4 pounds
Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is
Select one:
a.
12 pounds of potatoes.
b.
16 pounds of potatoes.
c.
20 pounds of potatoes.
Solution
It takes farmer 3 hours to produce 15 pounds of meat. Since he could trade with the Rancher, the opportunity cost is:
(4 potatoes / hour)(3 hours) = 12 potatoes.
Answer is A
.
Table 3-31 Labor Hours Needed to Make 1 Pound of- Amount Produced in 4.docx
1. Table 3-31
Labor Hours Needed to
Make 1 Pound of:
Amount
Produced in 40 hours
Meat
Potatoes
Meat
Potatoes
Farmer
8 hours/pound
5 hours/pound
5 pounds
8 pounds
Rancher
4 hours/pound
10 hours/pound
10 pounds
4 pounds
Refer to Table 3-31. For the farmer, the opportunity cost of 15 pounds of meat is
Select one:
a.
12 pounds of potatoes.
b.
2. 16 pounds of potatoes.
c.
20 pounds of potatoes.
Labor Hours Needed to
Make 1 Pound of:
Amount
Produced in 40
hours
Meat Potatoes Meat Potatoes
Farmer 8 hours/pound 5 hours/pound 5 pounds 8 pounds
Rancher 4 hours/pound 10 hours/pound 10 pounds 4 pounds
Solution
It takes farmer 3 hours to produce 15 pounds of meat. Since he could trade with the Rancher, the
opportunity cost is:
(4 potatoes / hour)(3 hours) = 12 potatoes.
Answer is A
