Refer to the accompanying table. Martha's opportunity cost of making of a pie is: $$\begin{array} { | l | c | c | }
\hline & \text { Time ta Make a Pie } & \text { Tirne to Muke a Cake } \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes} & 60 \text { minutes } \
\hline
\end{array}$$
A)3/4 of a cake.
B)4/3 of a cake.
C)8 cakes.
D)80 cakes.

Question

Refer to the accompanying table. Martha's opportunity cost of making of a pie is: $$\begin{array} { | l | c | c | } 
\hline & \text { Time ta Make a Pie } & \text { Tirne to Muke a Cake } \
\hline \text { Martha } & 60 \text { minutes } & 80 \text { minutes } \
\hline \text { Julia } & 50 \text { minutes} & 60 \text { minutes } \
\hline
\end{array}$$  
A)3/4 of a cake.
B)4/3 of a cake.
C)8 cakes.
D)80 cakes.

Quizplus · Accepted Answer

Martha's opportunity cost of making a pie is the amount of cake she could have made in the same time. Since she takes 60 minutes to make a pie and 80 minutes to make a cake, in 60 minutes, she could have made 60/80 = 3/4 of a cake.

Refer to the Accompanying Table A)3/4 of a Cake