Scenario.
Assuming that Sue and Sara switch producing cap and producing a jacket at a constant rate. In one hour, Sue can produce 60 caps or 18 jackets and Sara can produce 60 caps or 24 jackets. Refer to Scenario. the opportunity cost of producing a cap for Sue is .

0.3 jackets

Explanation:

The opportunity cost refers to the cost of sacrificing some units of a commodity for producing an additional unit of other commodity.

Sue can produce 60 caps or 18 jackets:

Opportunity cost of producing a jacket = (60 ÷ 18) caps

                                                                 = 3.33 caps

Opportunity cost of producing a cap = (18 ÷ 60) jackets

                                                                 = 0.3 jacket

Here, the opportunity cost of producing a cap for Sue is 0.3 jackets.

answer; competency based pay;