Question

In one week, jedidiah schlepp can produce 24 gizmos or 20 whatsits. what is the opportunity cost ratio, in gizmos per whatsit?

Answer 1

Answer: The opportunity cost ratio for Jedidiah Schlepp per week is 1.2 gizmos per unit of whatsit or 1.2:1.

Jedidiah Schlepp can produce a maximum of either 24 gizmos or 20 whatsits in a week.

So,

24 gizmos = 20 whatsits

Since we need to express the opportunity cost ratio as number of gizmos to one unit of whatsit, we divide both sides of the equation by 20.

We get,

$\frac{24}{20} gizmos =\frac{20}{20} whatsits$

$1.2 gizmos = 1 whatsit$