Table 2-5 Table 2-5 Shows the Output Per Month of Month

question 104

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 unicycle?

• A) 1/3 of a pogo stick
• B) 3 pogo sticks
• C) 1/2 of a unicycle
• D) 1.3 pogo sticks

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Definitions:

Marginal Cost

The increase or decrease in the total cost of a production run for making one additional unit of an item.

Marginal Benefit

The additional satisfaction or utility gained by consuming an extra unit of a good or service.

Diamond

A naturally occurring gemstone composed of carbon, known for its hardness and brilliance, often used in jewelry.

Marginal Analysis

The examination of the costs and benefits of a small (marginal) change in the production of goods or services.