Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.Maria's opportunity cost of doing one load of laundry is:
A)4 pages.
B)6 pages.
C)2/3 of a page.
D)3/2 of a page.
E)impossible to compute without additional information.

Question

Quizplus · Accepted Answer

Opportunity cost is defined as the value of the next best alternative forgone. In this case, the next best alternative for Maria when she is doing one load of laundry is typing. Since she can type 8 pages per hour, her opportunity cost of doing one load of laundry is 8 pages/12 loads = 2/3 of a page. Therefore, the answer is C.

Hans Can Do 4 Loads of Laundry Per Hour,and He