Conan O'Brien hosts the Conan show and Andy Richter, his sidekick, writes for it. Conan needs 4 hours to rehearse and host a good show. It takes Andy 10 hours to do the same. Conan writes one usable joke in an hour, but Andy needs 2 hours to do the same. Conan's opportunity cost of writing a single usable joke is:
A) 0.2 units of hosting.
B) 0.25 units of hosting.
C) 0.5 units of hosting.
D) 1 unit of hosting.

Question

Quizplus · Accepted Answer

To find Conan's opportunity cost of writing a single usable joke, we need to calculate how much hosting time he could have spent if he didn't write the joke. 
Conan can write one usable joke in an hour, so if he didn't spend that hour writing the joke, he could have spent that hour hosting instead. 
Conan needs 4 hours to rehearse and host a good show, so his opportunity cost of writing one usable joke is 1/4 or 0.25 units of hosting.

Conan O'Brien Hosts the Conan Show and Andy Richter, His