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Juanita and Shantala run a business that programs and tests cellular phones. Ass

ID: 1133509 • Letter: J

Question

Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.

Refer to Table 3-29. Juanita’s opportunity cost of testing one cellular phone is programming

0.133 cellular phones and Shantala’s opportunity cost of testing one cellular phone is programming 2.5 cellular phones.

0.133 cellular phones and Shantala’s opportunity cost of testing one cellular phone is programming 0.4 cellular phones.

7.5 cellular phones and Shantala’s opportunity cost of testing one cellular phone is programming 2.5 cellular phones.

7.5 cellular phones and Shantala’s opportunity cost of testing one cellular phone is programming 0.4 cellular phones.

Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies.

Minutes Needed to
Number of Cellular Phones Programmed or Tested in a 40-Hour Week
Program 1 Cellular Phone
Test 1 Cellular Phone
Cellular Phones Programmed
Cellular Phones Tested
Juanita ? 2
160
1200
Shantala
10 4 240 600

Explanation / Answer

The answer is "C"

7.5 cellular phones and Shantala’s opportunity cost of testing one cellular phone is programming 2.5 cellular phones.

Juanita opportunity cost is 1200 / 160. That means it cost her a total 7.5 tested phones of she goes for cellular phone programming. Similarly, Shantala has to sacrifice 600 / 240 i.e. 2.5 phone testing only for every single phone programmed.