The Coffee Korner, a small cafe near campus, sells lattes for $3.00 and biscotti for $1.50 each. What is the opportunity cost of buying a biscotti?

Question

Quizplus · Accepted Answer

The opportunity cost of buying a biscotti is what you give up to buy it instead of something else. Since a biscotti costs $1.50 and a latte costs $3.00, buying a biscotti means giving up 1/2 of a latte ($1.50/$3.00 = 1/2), not 1/5 as stated. Therefore, there seems to be a misunderstanding in the interpretation of the choices provided, as none directly reflect the correct calculation based on the given prices. The correct calculation based on the provided information should result in 1/2 of a latte, not 1/5.

The Coffee Korner, a Small Cafe near Campus, Sells Lattes