Two friends,Monica and Chandler,enjoy baking bread and making apple pies.Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Chandler's opportunity cost of baking 1 pie?
A) 4 pies
B) 2 pies
C) 1 pie
D) 1 loaf of bread
E) 1/2 loaf of bread

Question

Quizplus · Accepted Answer

Chandler's opportunity cost of baking 1 pie is the amount of the other good (bread) he has to give up to make a pie. Since he takes the same amount of time (4 hours) to make either a pie or a loaf of bread, his opportunity cost of making 1 pie is 1 loaf of bread.

Two Friends,Monica and Chandler,enjoy Baking Bread and Making Apple Pies