Table 2.5 Table 2.5 Shows the Output Per Month of Two People

question 160

Multiple Choice

Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. What is Fred's opportunity cost of making a pogo stick?

• A)1/3 unicycle
• B)3 unicycles
• C)6/7 pogo stick
• D)1/2 unicycle

---

Definitions:

Better Perspective

An improved or more comprehensive way of looking at or understanding a situation or concept.

Network Externalities

The effect that one user of a good or service has on the value of that product to other people, often positive, as the number of users increases.

Product Variety

The variety of products or services a company provides or that are accessible in a marketplace.

Cost Diseconomies

Situations where costs per unit increase as a firm's operation scales up, often due to inefficiencies or increased complexity.