Suppose Cathy and Lewis work in a bakery making pies and cakes. Suppose it takes Cathy 1.5 hours to make a pie and 1 hour to make a cake, and suppose it takes Lewis 2 hours to make a pie and 1.5 hours to make a cake. What is the opportunity cost to Cathy of making a cake?
A)2/3 of a pie.
B)1 pie.
C)1.5 pies.
D)1.33 pies.

Question

Quizplus · Accepted Answer

In the time it takes her to make a cake, Cathy could make 2/3 (= 1/1.5)of a pie.

Suppose Cathy and Lewis Work in a Bakery Making Pies