Respuesta :
Answer:
The correct answer is: lower; higher.
Explanation:
Opportunity cost is the cost of sacrificing the second-best alternative.
James can catch 5 pounds of trout or pick 10 pounds of oranges.
Sam can catch 3 pounds of trout or pick 12 pounds of oranges.
The opportunity cost of catching trouts for James is
= [tex]\frac{what\ is\ sacrificed}{what\ is\ gained}[/tex]
= [tex]\frac{10}{5}[/tex]
= 2
The opportunity cost of catching trouts for Sam is
= [tex]\frac{what\ is\ sacrificed}{what\ is\ gained}[/tex]
= [tex]\frac{12}{3}[/tex]
= 4
So we see that James has a lower opportunity cost of catching trouts.
The opportunity cost of picking oranges for James is
= [tex]\frac{what\ is\ sacrificed}{what\ is\ gained}[/tex]
= [tex]\frac{5}{10}[/tex]
= 0.5
The opportunity cost of picking oranges for Sam is
= [tex]\frac{what\ is\ sacrificed}{what\ is\ gained}[/tex]
= [tex]\frac{3}{12}[/tex]
= 0.25
So we see that James has a higher opportunity cost for picking oranges.
