Opportunity Cost from Production Possibilities

Steps:

• Identify maximum output combinations for rings and bracelets from the table for each person.
• Calculate Zoe's opportunity cost of bracelets: rings forgone per bracelet produced (max rings / max bracelets).
• Repeat for Luke to compare opportunity costs.
• Evaluate statements against these calculations.

Why D is correct:

• Opportunity cost is the next-best alternative forgone; for Zoe, producing one bracelet means giving up 2 rings, as per her production trade-off ratio.

Why the others are wrong:

• A: Luke's opportunity cost for bracelets is lower (e.g., 1 ring per bracelet), not larger than Zoe's.
• B: Opportunity costs vary if production shows increasing trade-offs, not constant for either.
• C: Minor phrasing error; statement is incomplete or identical to D, but D is the precise correct form.

Final answer: D