Question

Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.Based on the scenario, Pete’s opportunity cost of one truck is:a. 6 cars.b. 4 cars.
c. 1 1/3 cars.d. 3 cars.e. 3/4 car.

Answer 1

Answer:

The opportunity cost will be 3 cars

So option (d) will be correct answer

Step-by-step explanation:

The opportunity is cost is best characterized as the following best action done without, it is something we give up to gain another.

For instance the opportunity cost of going to class can be the pleasure from watching movie, or spending time with companions or something different. The opportunity  cost can be determined by isolating what you forgone by what you gain.

So opportunity cost $=\frac{12}{4}=3cars$

So option (d) will be the correct answer