Question

Use the scenario to answer the following questions:

Rosa and Dirk produce basketballs and footballs. Rosa can produce six basketballs per hour or two footballs per hour. Dirk can produce three basketballs per hour or four footballs per hour.

Based on the scenario, Dirk’s opportunity cost of one basketball is ________ football(s).

1)	one and a third

2)

three

3)three-quarters of a

4)one

5)

four

Answer 1

Ans.- (1)

Explanation:

Dirk can produce 3 basketball per hour (i.e. 1 basketball per 20 minutes) and 4 football per hour(i.e. 4/3 footballs in 20 minutes).So, if he produces one basketball in 20 minutes ,he has to give up 4/3=1.33 footballs which is the opportunity cost of dirk.

If you have any doubt,feel free to ask.

Don't forget to thumbs up.