Suppose That a Bakeshop with 5 Employees Can Produce Both

question 92

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 pie?

• A)125 pies
• B)0.4 cakes
• C)2.5 pies
• D)0.4 pies
• E)50 cakes

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