In one week, Sami can knit 5 sweaters or bake 240 cookies. In one week, Leila can knit 15 sweaters or bake 480 cookies. Leila's opportunity cost of knitting one sweater is _____

Question

Quizplus · Accepted Answer

Leila has a comparative advantage in knitting sweaters as she can knit 15 in a week while Sami can only knit 5. To find the opportunity cost of knitting a sweater, we need to compare it with the alternative use of Leila's time, which is baking cookies.

For Leila, the opportunity cost of knitting a sweater is the number of cookies she could have baked in the same amount of time. We can find this by dividing the number of cookies she can bake in a week (480) by the number of sweaters she can knit in a week (15):

Opportunity cost of knitting a sweater = 480/15 = 32 cookies

Therefore, the answer is C, Leila's opportunity cost of knitting one sweater is equal to 32 cookies.

The best choice depends on what the goal is. If the goal is to maximize the number of sweaters, Sami should knit the sweaters and Leila should bake the cookies. If the goal is to maximize the number of cookies, then Sami should bake the cookies and Leila should knit the sweaters.

In One Week, Sami Can Knit 5 Sweaters or Bake