If Helen gives up the opportunity to bake 40 cakes for each room she paints and Josh can paint one room in the time it takes him to bake 60 cakes, which of the following is true?

Question

Quizplus · Accepted Answer

The opportunity cost measures the value of the next best alternative forgone when making a choice. Helen is giving up the opportunity to bake 40 cakes for each room she paints, while Josh can paint one room in the time it takes him to bake 60 cakes. Therefore, the opportunity cost of painting one room for Helen is giving up the opportunity to bake 40 cakes and the opportunity cost of baking one cake for Josh is giving up the opportunity to paint one room. Thus, the opportunity cost of baking cakes is lower for Josh.

If Helen Gives Up the Opportunity to Bake 40 Cakes