Suppose That a Bakeshop with 5 Employees Can Produce Both

question 22

Multiple Choice

Suppose that a bakeshop with 5 employees can produce both pies and cakes.In one day,if all resources are devoted to baking pies,the shop can produce 125 pies; if all resources are devoted to baking cakes,the shop can produce 50.What is the shop's opportunity cost of producing any one cake?

• A)0.4 pies
• B)0.25 pies
• C)2.5 pies
• D)0.4 cakes
• E)2.5 cakes

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Definitions:

Cortex

The outer layer of the brain involved in numerous high-level functions such as thought, memory, and decision-making.

Neurons

Basic working units of the brain, specialized cells that transmit information to other nerve cells, muscle, or gland cells.

Interpreter

A person who translates spoken or sign language into another language.

Thoughts

Mental processes or ideas that occur in the mind, ranging from abstract concepts to concrete plans.