ACTIVITY 1.8 The cost of making choices
A factory employs 10 people and has 2 machines able to produce and pack
300 glass bottles each day. The same employees and machines could instead be
used in the same factory to make and pack 400 glass jars each day.
The same 10 employees used to work on a farm and were very skilled at growing and
harvesting corn until the farm was sold and the factory was built on the farmland.
Compared to the farm the factory is noisy and pollutes the air with smoke.
1 )What is the opportunity cost to the factory owners of using the 10
employees and 2 machines to make 300 bottles each day?
2 )What is the opportunity cost to the employees of working in the factory?
3) What is the opportunity cost to society of the factory?