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. Andy's opportunity cost of rehearsing and hosting a show is:
A) 0.2 usable jokes.
B) 0.5 usable jokes.
C) 4 usable jokes.
D) 5 usable jokes.

Question

Quizplus · Accepted Answer

Andy's opportunity cost of rehearsing and hosting a show is the number of jokes he could have written in that time. Since it takes him 10 hours to rehearse and host, and he writes one joke every 2 hours, he could have written 5 jokes in that time (10 hours / 2 hours per joke = 5 jokes).

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