Suppose That Opportunity Costs Are Constant and That Fred Can

question 64

Multiple Choice

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can either produce a maximum of eight pies or two cakes in a day. Ethel's opportunity cost to produce one cake is

• A) one-half pie.
• B) two pies.
• C) six pies.
• D) four pies.

---

Definitions:

Minor-Points Close

A sales technique that aims to secure agreement on minor details of the sale in order to facilitate the customer's agreement to the main purchase.

Retail Showroom

A physical space where products are displayed to the public, allowing customers to browse, see, and sometimes test products before purchasing.

New Mattress

A recently manufactured item designed to provide a comfortable surface for sleeping.

Maroon

A dark brownish-red color; often associated with richness, warmth, and intensity in color symbolism.