in the above figure, jacks opportunity cost of producing 1 gallon of bottled water is ______ of soda.\no 6…

Explanation:

Step1: Identify PPF values for Jack

Jack's PPF intersects the soda - axis at 400 gallons and the bottled - water axis at 800 gallons.

Step2: Calculate opportunity cost formula

The opportunity cost of producing 1 unit of bottled water is the amount of soda given up. The formula for opportunity cost of bottled water in terms of soda is $\text{Opportunity Cost}=\frac{\text{Change in Soda}}{\text{Change in Bottled Water}}$.

Step3: Determine change values

When Jack moves from producing 0 gallons of bottled water to 800 gallons of bottled water, he moves from producing 400 gallons of soda to 0 gallons of soda. So, $\text{Change in Soda}=- 400$ gallons and $\text{Change in Bottled Water}=800$ gallons.

Step4: Calculate opportunity cost

$\text{Opportunity Cost}=\frac{-400}{800}=-\frac{1}{2}$. The negative sign just indicates an inverse relationship. The opportunity cost of producing 1 gallon of bottled water is $\frac{1}{2}$ of a gallon of soda.

Answer:

1/2 of a gallon