If Helen can paint one room in the time it takes her to bake 40 cakes and Josh can paint one room in the time it takes him to bake 60 cakes,which of the following is true?
A)The opportunity cost of painting is higher for Helen.
B)The opportunity cost of baking cakes is lower for Josh.
C)The opportunity cost of painting one room is 1/40 of a cake for Helen.
D)The opportunity cost of baking one cake is 60 rooms painted for Josh.
E)The opportunity cost of cakes cannot be computed.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. In this case, the opportunity cost of painting one room is the number of cakes that could have been baked in that same amount of time. 
To compare the opportunity cost between Helen and Josh, we need to find the ratio of cakes baked to rooms painted for each person.

For Helen: 
1 room painted = 40 cakes baked 
The opportunity cost of painting one room is 40 cakes/1 room = 40

For Josh: 
1 room painted = 60 cakes baked 
The opportunity cost of painting one room is 60 cakes/1 room = 60

Since Josh has a higher opportunity cost for baking cakes (60) compared to Helen (40), it means that the benefits of painting one room for Josh outweigh the benefits of baking 60 cakes, while for Helen, the benefits of painting one room are less compared to baking 40 cakes. Therefore, the opportunity cost of baking cakes is lower for Josh, and the correct answer is B.

If Helen Can Paint One Room in the Time It