Figure 1- 2With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms.

-Refer to Figure 1- 2.Suppose the school board chooses to allocate all $500 000 to the purchase of laptop computers.What is the opportunity cost of this entire purchase?

Question

Figure 1- 2With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms.
 
-Refer to Figure 1- 2.Suppose the school board chooses to allocate all $500 000 to the purchase of laptop computers.What is the opportunity cost of this entire purchase?

Quizplus · Accepted Answer

The opportunity cost of choosing to purchase 2000 laptop computers is the alternative option, which is 20,000 textbooks that could have been purchased instead. Therefore, the opportunity cost is 20,000 textbooks.

Figure 1- 2With a Budget of $500 000,a School Board