In one week, Mohammed can knit 5 sweaters or bake 240 cookies.The opportunity cost per cookie for Mohammed is
A)$5
B)5 sweaters
C)48 sweaters
D)1/48 of a sweater
E)48 cookies

Question

Quizplus · Accepted Answer

The opportunity cost per cookie is the number of sweaters Mohammed could have made instead of baking 240 cookies. In one week, he can knit 5 sweaters, so in one week he can knit $\frac{5}{240}$ of a sweater for every cookie he bakes. Simplifying, we have $\frac{1}{48}$ of a sweater per cookie. Therefore, the best choice is D, which is the opportunity cost per cookie in terms of a fraction of a sweater.

In One Week, Mohammed Can Knit 5 Sweaters or Bake