Scenario: Yasmin and Zeek are lawyers working at V, W, and X LLP. Yasmin works 48 hours a week, and Zeek also works 48 hours a week. They handle two types of cases, intellectual property (IP) cases and corporate fraud (CF) cases. It takes Yasmin 6 hours to handle each IP case and 4 hours to handle each CF case. Zeek can finish an IP case in 3 hours and a CF case in 6 hours.
-Refer to the scenario above.What is Zeek's opportunity cost of handling a CF case?
A) Two IP cases
B) One and a half IP cases
C) 30 minutes
D) 6 hours

Question

Quizplus · Accepted Answer

Zeek's opportunity cost of handling a CF case is the amount of IP cases he could have handled in the same time. Since he can handle an IP case in 3 hours, and a CF case takes him 6 hours, he could have handled 2 IP cases in the time it takes to handle one CF case.

Scenario: Yasmin and Zeek Are Lawyers Working at V, W