Scenario: A machine that can be used to print both notebooks and magazines is available for use for a fixed period of time. If it is used only to print notebooks, 30 notebooks can be printed. If it is used only to print magazines, 15 magazines can be printed.
-Refer to the scenario above.What is the opportunity cost of printing 1 notebook?

Question

Quizplus · Accepted Answer

The opportunity cost of printing 1 notebook is the number of magazines that could have been printed instead. Since the machine can print 30 notebooks or 15 magazines, the opportunity cost of printing 1 notebook is 0.5 magazines (15 magazines ÷ 30 notebooks = 0.5).

Therefore, the best choice would be to print notebooks if the value of 30 notebooks is greater than the value of 15 magazines. The best choice would be to print magazines if the value of 15 magazines is greater than the value of 30 notebooks. If the values are equal, it does not matter which option is chosen.

Scenario: a Machine That Can Be Used to Print Both