Question

a business produces picnic tables and benches the business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make?

Answer 1

They must give up 5 picnic tables per week (going from 20 to 15) to produce 5 more benches (from 10 to 15).

So the opportunity cost is 5 tables for 5 benches, i.e. 1 table foregone for each additional bench.