Mike and Sandy Are Two Woodworkers Who Both Make Tables

question 171

Multiple Choice

Mike and Sandy are two woodworkers who both make tables and chairs.In one month,Mike can make 6 tables or 18 chairs,where Sandy can make 5 tables or 25 chairs.What is the opportunity cost of 1 chair

• A)1/5 table for Mike and 1/3 table for Sandy
• B)5 tables for Mike and 3 tables for Sandy
• C)1/3 table for Mike and 1/5 table for Sandy
• D)3 tables for Mike and 5 tables for Sandy

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Definitions:

Workers

Individuals engaged in a task or activity for wages or salary.

Diminishing Marginal Product

The decrease in the additional output gained from using an extra unit of a production input, holding all other inputs constant, beyond a certain point.

Marginal Product

The supplementary yield that comes from the utilization of an extra unit of a given input, with all other inputs remaining fixed.

Number of Workers

The total count of individuals currently employed or available for employment in a specific labor market.