Homework Answers
At alternative C, bakery is producing 60 pizza pies and 180 bread loaves.
At alternative B, bakery is producing 30 pizza pies and 240 bread loaves.
moving from alternative C to alternative B increase the production of bread by 60 loaves (i.e., from 180 to 240) and at the same time decrease the production of pizza by 30 pies (i.e., from 60 to 30)
Opportunity cost of one loaf of bread = (decrease in production of pizza / increase in production of bread)
Opportunity cost of one loaf of bread = (30 / 60)
Opportunity cost of one loaf of bread = 0.5 pizza pie.
Answer: Option (B).
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