The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABC Music Club member, the opportunity cost of a CD is

Name: The ABC Music club charges a price of $8 for a cassette and $16 for a CD. For an ABC Music Club member, the opportunity cost of a CD is
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Question

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The opportunity cost of a CD is the number of cassettes that could be purchased instead. Since a CD costs $16 and a cassette costs $8, the opportunity cost of one CD is 2 cassettes ($16/$8 = 2).

The ABC Music Club Charges a Price of $8 for a Cassette