Question

I have the answer to the problem but I can't figure out the steps to get the answer. I know opporunity cost is whats lost over whats gained, but I still don't understand where to get the numbers from. Sorry if that doesn't make sense.

Table 1 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. old na baba wolnom mod Hours Needed Amount Produced i V4 To Make 1 in 40 Hours El nomb mixer toaster mixers toasters Maya 815 8 Miguel 2010 3. Refer to Table 1. The opportunity cost of 1 toaster for Maya is a. 0.625 mixers. b. 1.6 mixers. c. 8 hours of labor. d. 1.6 hours of labor.

Answer 1

If Maya spends all of her resources in producing Mixers , then she can produce = 5 mixers.

And if she spend all of her resources in producing toasters ,then she can produce 8 toasters.

So, the opportunity cost of 1 toaster for Maya = (5/8) mixers (i.e which she has to given up ) = 0.625 mixers.

Hence, option(A) is correct.