Question

Mark can produce 6 guitars in a month and Katie can produce 5 guitars in a month. Also, Mark can produce 8 banjos in a month and Katie can produce 2 banjos in a month. What is Katie’s opportunity cost of producing 30 guitars?

Answer 1

12 banjos

Step-by-step explanation:

It will take 6 month for Katie to produce 30 Guitars, in that time she would forgive 12 banjos, so, 12 banjos is opportunity cost for Katie.