Asked by Larry Dowling on Jun 03, 2024
Verified
Britain must give up the production of 75 hats to produce 25 additional sweaters.The opportunity cost of producing 3 hats is _____ sweater(s) .
A) 1
B) 3
C) 22
D) 28
Opportunity Cost
The expense incurred by not choosing the second-best option available when a decision is made.
Sweaters
Clothing items made of wool or similar yarns, designed to provide warmth by covering the upper body.
Hats
A type of headwear that comes in various shapes, sizes, and materials, often used for fashion, protection, or ceremonial purposes.
- Absorb the idea of opportunity cost in alternating trade-offs and the technique for its calculation in differing scenarios.
Verified Answer
RE
Rodolph El HajjJun 04, 2024
Final Answer :
A
Explanation :
The opportunity cost of producing 3 hats is 1 sweater because Britain must give up the production of 75 hats to produce 25 additional sweaters, so for every 3 hats (75/25 = 3), 1 sweater is the opportunity cost.
Learning Objectives
- Absorb the idea of opportunity cost in alternating trade-offs and the technique for its calculation in differing scenarios.
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