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,Josh's opportunity cost of baking one cake is:
A)painting one room.
B)painting 1/40 of a room.
C)painting 1/60 of a room.
D)painting 2/3 of a room.
E)painting 3/2 of a room.

Question

Quizplus · Accepted Answer

Josh's opportunity cost of baking one cake is the value of what he has to give up to bake that cake, which is painting one room. Since he can paint one room in the time it takes him to bake 60 cakes, his opportunity cost of baking one cake is painting 1/60 of a room.

If Helen Can Paint One Room in the Time It