Table 3-28 Barb and Jim Run a Business That Sets Up and Up

question 280

Multiple Choice

Table 3-28
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
​
-Refer to Table 3-28. Barb's opportunity cost of testing one computer is setting up

• A)4/5 computer and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
• B)4/5 computer and Jim's opportunity cost of testing one computer is setting up 4/3 computers.
• C)5/4 computers and Jim's opportunity cost of testing one computer is setting up 3/4 computer.
• D)5/4 computers and Jim's opportunity cost of testing one computer is setting up 4/3 computers.

---

Definitions:

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and investment returns.

Fixed

Relates to assets or costs that do not change with the level of production or business activity in the short term.

Linear

A term describing something arranged in or extending along a straight or nearly straight line.