Exhibit 2-12 Maria and Hans Production Possibilities for Laundry and Typing According to Exhibit 2-12, Maria's opportunity cost of doing a load of laundry is

Question

Exhibit 2-12 Maria and Hans Production Possibilities for Laundry and Typing  According to Exhibit 2-12, Maria's opportunity cost of doing a load of laundry is

Quizplus · Accepted Answer

Maria's opportunity cost of doing a load of laundry is the amount of typing she has to give up to do it. In Exhibit 2-12, we see that if she spends 2 hours doing laundry, she can only type 3 pages. This means her opportunity cost of doing one load of laundry is 3 pages/2 hours = 1.5 pages per hour. If we want to do one load of laundry, we need to give up 1.5 pages of typing in that hour. Therefore, Maria's opportunity cost of doing a load of laundry is 2/3 of a page.