Answer to Question #261285 in Microeconomics for Juice

Question

Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT?

- The opportunity cost for Sandy of producing one sales call is 10 economics reports.

- The opportunity cost for Tim of producing one economics report is 2 sales calls.

- The opportunity cost for Tim of producing one sales call is 1/2 of an economics report.

- The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call.

Answer 1

NO - The opportunity cost for Sandy of producing one sales call is 10 economics reports.

NO - The opportunity cost for Tim of producing one economics report is 2 sales calls.

NO - The opportunity cost for Tim of producing one sales call is 1/2 of an economics report.

YES - The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call.